Secured 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.
This note is further secured with an instrument as agreed between the borrower and the lender.
When the Promissory Note is properly repaid, this 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 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.
3. Related Documents
If the note is to be secured by a guarantee, the guarantor and the lender should also sign the guarantee agreement which can be found below: https://docpro.com/doc1571/contract-of-guarantee-to-lender-relating-to-loan-facility-lender-with-indemnity.
4. How to Tailor the Document for Your Need?
Click the “Create Document” button and fill in the details of the parties. You can click the “Fill with Member’s Information” button to complete the party’s information with your personal or business information saved to your account.
Please fill in any additional information by following the step-by-step guide on the left-hand side of the preview document and click the “Next” button.
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Please get all parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document. Each party should have a copy of the executed document.