Legal Question in Business Law in Illinois

Note interpretation

The note says:

For value recived (I )borrower, promises to pay (her)

Lender, $4000.00 and interest at the monthly rate of 7.5% on the unpaid balance, which will amount to a total of $4300.00, over the course of 22 months.

What does this mean?


Asked on 10/10/05, 12:09 pm

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Note interpretation

Is this a trick question? Though badly worded, it appears to mean that someone owes someone else some money plus interest. Based on the payoff amount of $4300, I would guess some payments were expected, since $300 would be just one year's interest, but again, if this is the entire agreement, it could use some help.

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Answered on 10/10/05, 1:37 pm
Thomas Moens Moens Law Offices, Chartered

Re: Note interpretation

I should also mention, that while you say the note says the interest is "at a monthly rate of 7.5%," I think it was the intent of the parties that the interest rate is at an ANNUAL rate of 7.5%. Otherwise your interest is 90% per year, which would amount to a total of $10,600.00 after 22 months. But it does SAY monthly.....

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Answered on 10/10/05, 3:26 pm


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