January 11, 2013 I, Jane Doe, residing at 111 Maple Dr., Los Angeles, CA 90435, hereby promise to pay back, in full, the borrowed amount of $1800 plus interest to John Smith at 5432 Applewood St., Los Angeles, CA 90456. This money will be used for the purpose of buying a new computer for school. The first payment in the amount of $200 plus 1.5% interest must be paid by March 1, 2013 and on the same date each month thereafter until the full amount is paid back, which must be no later than November 1, 2013. If I miss a payment or am late for a payment, 0.05% interest will be added on the already agreed-upon interest. If I fail to pay back the total borrowed amount by the agreed-upon date, Mr. Smith will be entitled to 1% interest each month in addition to the interest already accrued. If I am unable to pay the interest or the owed amount, Mr. Smith will be guaranteed my HD flat screen TV and HP Tablet worth a total of $2,000. As the borrower, I am aware of the right to be informed that the note can be transferred by the lender to another party. The original terms and agreement will remain effective, but the debt will be payable to a different party, which will be agreed upon at the time of transfer. Thank you for your cooperation. Signed, Jane Doe (818) 555-9876 Leslie Jones 3254 Main St., Los Angeles, CA 98766 (213) 555-7878 John Smith (818) 555-4567