promissory-note-residential

name	promissory-note-residential
title	Promissory Note (Residential)
description	Drafts enforceable residential promissory notes with party identification, principal/interest terms, payment schedules, default/acceleration provisions, and security instrument cross-references. Ensures TILA awareness and state usury compliance. Use when drafting promissory notes for residential mortgages, deeds of trust, or seller-financed home sales; trigger keywords: promissory note, residential note, mortgage note, deed of trust note, seller financing note, balloon note.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/promissory-note-residential
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	finance
language	en
tags	["agreement","drafting","transactional"]

Promissory Note (Residential)

Draft an enforceable debt obligation secured by residential property, compliant with state usury laws and federal lending regulations.

Prerequisites

1. Transaction documents: purchase agreement, security instrument (mortgage or deed of trust), any term sheets.
2. Borrower(s): full legal names (as on government ID); joint and several liability status if multiple.
3. Lender: full legal name; entity type + jurisdiction of formation if applicable.
4. Property: complete street address matching the security instrument exactly.
5. Loan terms: principal amount, interest rate (fixed or variable parameters), amortization period, maturity date.
6. Jurisdiction rules: usury ceiling, late charge cap, notice requirements, prepayment penalty restrictions.

Output Structure / Process

1. Header & Parties

Element	Requirements
Title	"PROMISSORY NOTE"
Execution date	Full month/day/year; establishes payment commencement and SOL reference
Property address	Exact match to security instrument (street, unit, city, state, ZIP)
Borrower(s)	Full legal names; joint and several if multiple; note marital status
Lender	Full legal name; entity type + jurisdiction if applicable

2. Financial Terms

Element	Requirements
Principal	Numerals AND words; unconditional promise satisfying UCC negotiability
Interest rate	Fixed: exact percentage. Variable: index, margin, adjustment frequency, caps, initial rate
Calculation method	Simple vs. compound; 360-day vs. actual-day year; accrual on unpaid principal
Payment schedule	Amount, frequency, due date, commencement date, total number of payments
Payment application	Order: accrued interest → principal → fees/charges
Maturity date	Explicit calendar date; balloon disclosure if not fully amortizing

3. Borrower Rights

• Prepayment: with/without penalty; written notice; application method (reduce term / payment / balloon).
• Partial prepayment: permitted Y/N; minimum amounts.