Even lending money within your circle of family and friends can become problematic if the terms are not clearly stated and signed by both parties. This promissory note states that the loan will be repaid in regular intervals over a set period of time. Any remaining balance will be due at the end of this period. The lender will be protected by collateral should the borrower be unable to pay. For use in Alabama, although there may be limits on interest rates or other aspects of lending money.