COGNOVIT NOTE Sample Clauses
A Cognovit Note is a legal instrument that allows a lender to obtain a judgment against a borrower without the need for a trial if the borrower defaults on the loan. In practice, the borrower, by signing the note, pre-authorizes the lender’s attorney to confess judgment in court on their behalf, effectively waiving the right to contest the claim. This clause streamlines the lender’s ability to recover debts quickly and efficiently, minimizing litigation costs and delays, and is primarily used to protect lenders from protracted collection processes.
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COGNOVIT NOTE. The Borrower hereby irrevocably authorizes and empowers any attorney-at-law to appear for the Borrower in any action upon or in connection with this note at any time after any obligation under this note becomes due, as herein provided, in any court in or of the State of Ohio or elsewhere, and waives the issuance and service or process with respect thereto, and irrevocably authorizes and empowers any such attorney-at-law to confess judgment in favor of the Investor against the Borrower, the amount due hereon, plus interest as herein provided, and all costs of collection, and waives and releases all errors in any said proceedings and judgments and all rights of appeal from the judgment rendered. The Borrower agrees and consents that the attorney confessing judgment on behalf of the Borrower hereunder may also be counsel to the Investor and the Borrower hereby further waives any conflict of interest which might otherwise arise and consents to the Investor paying such confessing attorney a legal fee or allowing such attorneys' fees to be paid from proceeds of collection of this note. ******************************************************************************** WARNING -- BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWER OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CASE. ******************************************************************************** DATALINC, LTD. By: Integrated Communications Network, Inc. its General Partner /s/▇▇▇▇ ▇. ▇▇▇▇▇▇▇ By: _____________________ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Chairman of the Board /s/▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ By: ______________________ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, President