1. Description.

Unsecured Promissory Note with Conditions. A promissory note is a financial instrument that contains a written promise by one party (the issuer of the note) to pay another party (the note's payee) a definite sum of money, at a specified future date. The Note will also set out the Conditions of Repayment of this amount of money by the Lender.

The issuer of the promissory note writes a promise to pay an amount of money to the lender. The Note is issued subject to the Conditions endorsed on it which form part of it. It is expected that the Lender will repay this principal amount, with or without interest on a determined due date. This amount can be paid in one single sum or by instalments, as agreed between the Borrower and the Lender. The promissory note will usually also contain clauses concerning matters related to late/default payment, transferral of the note, notices, waivers, severability etc.

When the Unsecured Promissory Note is properly repaid, the Unsecured Promissory Note will be cancelled by the Lender.

2. How to use this Document?

This document should be carefully read by the Individual Borrower and Lender.

Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed by 1-2 witnesses.

The Principal Loan to be promised and repaid, Interest Rate, and Interest Payment Date should all be clearly stated in the unsecured promissory note.

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.