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  1. #1

    Default Return of Promissory Note to Borrower

    My question involves collection proceedings in the State of: FL

    Borrower and lender have a written promissory note signed properly. Two yrs later borrower pays back lender in full. Does the lender have any legal obligation to send back the note or acknowledge it has been paid, or can he/she legally just forget about it.

  2. #2
    Join Date
    Sep 2010
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    Default Re: Return of Promissory Note to Borrower

    No, there is no such requirement.

  3. #3
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    Mar 2013
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    Default Re: Return of Promissory Note to Borrower

    Quote Quoting urrterrible
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    My question involves collection proceedings in the State of: FL

    Borrower and lender have a written promissory note signed properly. Two yrs later borrower pays back lender in full. Does the lender have any legal obligation to send back the note or acknowledge it has been paid, or can he/she legally just forget about it.
    Are you the borrower who wants it or the lender who doesn't want to bother sending it?

  4. #4

    Default Re: Return of Promissory Note to Borrower

    I'm a neutral 3rd party.

  5. #5
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    Default Re: Return of Promissory Note to Borrower

    Quote Quoting urrterrible
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    I'm a neutral 3rd party.
    OK.

    I can't imagine anybody being such an ahole that he/she wouldn't take 5 minutes and a stamp to acknowledge the payoff.

    I'll bet there's a lot more to the story.

  6. #6
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    Sep 2010
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    Default Re: Return of Promissory Note to Borrower

    Quote Quoting adjusterjack
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    OK.

    I can't imagine anybody being such an ahole that he/she wouldn't take 5 minutes and a stamp to acknowledge the payoff.

    I'll bet there's a lot more to the story.
    Eh? I haven't seen a legitimate lender return a promissary note in decades. This wasn't a request for verification of satisfaction.

  7. #7

    Default Re: Return of Promissory Note to Borrower

    Fly,

    I'm assuming there is no legal obligation to verify satisfaction either other than cashing the repayment. No/Yes?

  8. #8
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    Default Re: Return of Promissory Note to Borrower

    Quote Quoting urrterrible
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    Fly,

    I'm assuming there is no legal obligation to verify satisfaction either other than cashing the repayment. No/Yes?
    No.

    But why wouldn't somebody do it just out of courtesy?

    - - - Updated - - -

    Quote Quoting flyingron
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    Eh? I haven't seen a legitimate lender return a promissary note in decades. This wasn't a request for verification of satisfaction.
    The question had to do with sending back the note or acknowledging that it has been paid.

    You're right. Lenders don't "send back the note" but they often routinely acknowledge the payoff with a lien release, receipt, deed reconveyance, account statement showing zero balance, or any number of other methods depending on the nature of the loan and the circumstances.

    I'm wondering what the real issue is here.

  9. #9
    Join Date
    Oct 2014
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    8,238

    Default Re: Return of Promissory Note to Borrower

    Quote Quoting urrterrible
    View Post
    My question involves collection proceedings in the State of: FL

    Borrower and lender have a written promissory note signed properly. Two yrs later borrower pays back lender in full. Does the lender have any legal obligation to send back the note or acknowledge it has been paid, or can he/she legally just forget about it.
    The current version of Uniform Commercial Code (UCC) Article 3, which covers negotiable instruments and which Florida has adopted, does not require that the note be returned. Nor does federal law require that. Instead, both federal law, the UCC, and other Florida statutes are written to accomodate modern business and financial practices and in particular to facilitate electronic transactions. As a result, the old requirement that the physical note or check must be presented and surrendered when paid has been done away with. That’s true for most other states, too. That old rule was needed in a world where cash was still the main method of payment and the records necessary to prove discharge of the note may not be readily available. But with modern banking and finance systems it is much easier to today to prove the payment and discharge of the debt so that rule is no longer needed.

  10. #10

    Default Re: Return of Promissory Note to Borrower

    Quote Quoting adjusterjack
    View Post
    OK.

    I can't imagine anybody being such an ahole that he/she wouldn't take 5 minutes and a stamp to acknowledge the payoff.

    I'll bet there's a lot more to the story.
    Yea, I would agree with you. Thanks.

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