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Matured Note

Information to Address Your Matured Note


If a promissory note/loan held within your account reaches its maturity date as outlined in the terms of the note, and your account has not received a full payoff of the loan, Equity Trust will provide a notice regarding your options for managing your asset.

  • First Notice
    You will receive the first notice informing you that our records indicate you have a matured note.
  • Second Notice
    If no action has been taken, you will receive a second notice reminding you that action is required.
  • Third Notice
    If no action has been taken, you will receive a third notice reminding you that action is required.
  • Fourth Notice & Fee
    If no action has been taken, your account will be assessed a non-refundable Matured Note Fee of $75 for each unresolved note.
  • Distribution
    • You will also receive a notice informing you when to expect the investment distribution if you do not take immediate action to resolve the matured note.
    • Your investment will be distributed at the last known value and reported to the IRS as taxable income. This may result in 10% tax penalty if you are under the age of 59½.

If you require further assistance, you may contact our office via email at [email protected].


Choose the Action You Wish to Take

Seize the Collateral

If the loan is secured by collateral, you may have the option to seize the collateral and replace the loan with the asset within your Equity Trust account.

In order to complete this transaction:

  1. Complete the Note Satisfaction Form
  2. Complete a Direction of Investment to add the asset seized to your account
  3. Send completed forms and supporting documents to Equity Trust

Direction of Investment to add asset seized:

Extend the Terms of the Loan

If you and the borrower agree to extend or modify the terms of the original note, your asset will be updated with the new terms within your Equity Trust account.

In order to complete this transaction:

  1. Complete the Promissory Note Modification Form
  2. Send the completed form (signed by the account owner and the borrower) along with the updated note to Equity Trust

Deem the Loan Uncollectible

If the borrower is unable/unwilling to pay back the loan, the loan can be deemed uncollectible.

In order to complete this transaction:

  1. Complete the Uncollectible Note Form
  2. Send the completed form, along with evidence that the note is uncollectible to Equity Trust

If the note was secured and is uncollectible, a Fair Market Value Form must be completed for the asset that was pledged as collateral and submitted along with your completed Uncollectible Note Form.

No Action at this Time

If your note has reached maturity and you do not want to take any action, you should send Equity Trust information to explain the situation regarding your loan and evidence that outlines the reason your account will continue to hold a matured loan.

Seize the Collateral

Seize the Collateral

If the loan is secured by collateral, you may have the option to seize the collateral and replace the loan with the asset within your Equity Trust account.

In order to complete this transaction:

  1. Complete the Note Satisfaction Form
  2. Complete a Direction of Investment to add the asset seized to your account
  3. Send completed forms and supporting documents to Equity Trust

Direction of Investment to add asset seized:

Extend the Terms of the Loan

Extend the Terms of the Loan

If you and the borrower agree to extend or modify the terms of the original note, your asset will be updated with the new terms within your Equity Trust account.

In order to complete this transaction:

  1. Complete the Promissory Note Modification Form
  2. Send the completed form (signed by the account owner and the borrower) along with the updated note to Equity Trust

Deem the Loan Uncollectible

Deem the Loan Uncollectible

If the borrower is unable/unwilling to pay back the loan, the loan can be deemed uncollectible.

In order to complete this transaction:

  1. Complete the Uncollectible Note Form
  2. Send the completed form, along with evidence that the note is uncollectible to Equity Trust

If the note was secured and is uncollectible, a Fair Market Value Form must be completed for the asset that was pledged as collateral and submitted along with your completed Uncollectible Note Form.

No Action at this Time

No Action at this Time

If your note has reached maturity and you do not want to take any action, you should send Equity Trust information to explain the situation regarding your loan and evidence that outlines the reason your account will continue to hold a matured loan.

Matured Promissory Note FAQs

Q: I received an expired promissory note notice, what do I need to do?
A: Review the possible circumstances that apply to your account on this page and follow the directions to resolve. If a scenario doesn’t apply to your situation, please contact Equity Trust by email at [email protected].

Q: What should I do if the promissory note was paid off but it is still showing in my account?
A: Provide Equity Trust Company with the Promissory Note Satisfaction Direction of Investment Form indicating the date and amount of the payoff. Please remember that any return on your investments must be deposited into your account.

Q: Why must the borrower sign if I choose to extend or modify the terms of the promissory note?
A: The original promissory note requires the borrower’s signature acknowledging the terms of the loan. Any modification made to the terms of the existing note should also be acknowledged by the borrower to ensure he or she are in agreement.

Q: What if I cannot contact the borrower?
A: You may choose to deem the promissory note uncollectible. In order to do this you must provide sufficient evidence that you have attempted to contact the borrower. Supporting documents are required in order to allow Equity Trust Company to reduce the value of the promissory note.

Q: How long do I have to submit required paperwork for my matured promissory note?
A: You should submit paperwork upon learning of your matured investment. Once we receive the paperwork, you will be contacted if additional information or clarification is needed.