Receipt note: how to execute it correctly so you do not lose your money

When a friend, acquaintance, or even a relative asks to borrow money, the most important thing is not to rely on a verbal agreement. Legally reliable protection is a properly drafted debt IOU. This document confirms the fact of the transfer of funds and the obligation to repay them.

✅ What must be included in an IOU
Document title — “IOU” or “Debt IOU”.
Date and place — day, month, year, and the city where it is drawn up.
Full details of the parties — full name, passport details (series, number, date of issue), taxpayer identification number, registered address and actual place of residence of the lender and the borrower.
Amount of the debt — in figures and in words, in the specified currency (hryvnia or foreign currency).
Repayment terms — the exact date (day, month, year) and the form of repayment (in cash or to a bank card).
Confirmation of receipt of the money — for example: “I have received the money in full at the moment of signing this IOU.”
Penalties for late payment (optional) — for example: a penalty of 1% for each day of delay.
Borrower’s signature — handwritten.
Witnesses (recommended for large amounts) — full names, signatures, and a note stating: “the money was transferred in their presence”.

🔑 Key recommendations

• Write it by hand — the borrower should write the IOU personally. This prevents any claim that they “did not write anything”.
• Do not allow corrections — the text must not contain errors, unclear wording, or corrections.
• Prepare 2 originals — one for the lender and one for the borrower.
• For large amounts — involve witnesses or have the IOU certified by a notary.

⚖️ Important to remember
An IOU drafted correctly is your protection in court. A verbal agreement has no legal force. Without documentary proof, it will be almost impossible to recover your money.

🎯 Not sure how to draft an IOU correctly?
We can help! Our legal services include:

• Drafting a properly structured debt IOU
• Preparing a loan agreement
• Debt recovery through court proceedings
• Notarial certification of documents

Contact us today and protect your funds before the borrower fails to repay the money.

Author – Svitlana Krutorohova, attorney at the law firm “WINNER”.