Appendix H: Form of Promissory Note

AuthorGregory M Stein - Michael D Goodwin - Morton P Fisher Jr
512 Appendices
Appendix H
Form of Promissory Note
Note: The particular provisions of promissory notes will vary widely
depending on the terms of the loan commitment, such as whether the
note will bear a fixed or floating rate of interest; whether principal is to be
amortized and, if so, the term of such amortization as distinguished from
the term of the loan; whether further advances will be made; whether and
when prepayment is permitted; and whether the repayment obligations
are with recourse to the borrower. The following form attempts to include
only typical provisions that would appear in a simple secured promissory
note for a loan such as the one described in Appendix G, Form of Loan
Agreement. Accordingly, the practitioner should consider the use of provi-
sions that are included in other forms in this book to supplement this form
and should become familiar with the terms of the loan commitment before
preparing a promissory note.
Remember that legal requirements vary from state to state and that this
document will probably need to be modified to comply with the require-
ments of any particular jurisdiction.
$ , 20__
a , as maker, having its principal
place of business at (“Borrower”),
hereby unconditionally promises to pay to the order of
, a , as lender, having
an address at
(“Lender”), or at such other place as the holder hereof may from time to time
designate in writing, the principal sum of
AND NO/100 DOLLARS ( ), or
so much thereof as is advanced, in lawful money of the United States of
America with interest thereon to be computed from the date of this Prom-
issory Note (this “Note”) at the Applicable Interest Rate, and to be paid in
accordance with the terms of this Note and that certain Loan Agreement
dated as of the date hereof between Borrower and Lender (as the same
may be amended, restated, replaced, supplemented, or otherwise modi-
fied from time to time, the “Loan Agreement”). All capitalized terms not
defined herein shall have the respective meanings set forth in the Loan
ste54861_10_app_365-516.indd 512 8/4/16 3:28 PM

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