Unsecured Loan Note with Conditions. This is similar to a private issuance of bond. Bonds and Notes are negotiable debt instruments generally issued by Companies or government authorities. It is a way to borrow money from investors without having to go to the banks.
The issuer of the debt instrument writes an unconditional promise to pay an amount of money to the investors at a determined future date under specific terms. Bonds and Notes can be secured or unsecured. Debentures generally are unsecured to raise capital for specific projects and business expansion, and is typically backed up only on the basis of the good name and credit history of the issuer. These debt securities carry either a floating or a fixed-interest coupon rate with a maturity date to repay the principal to the investors.
The amount of this series of Notes is [AMOUNT]. Power is however reserved to the Company by unanimous resolution of its members at any time and from time to time to create and issue additional notes identical in all respects to and forming a single issue with this Note or carrying such rights as the Company may determine.
All Notes as and when issued shall rank pari passu and rateably without discrimination or preference and as unsecured obligations of the Company.