Appendix H: Form of Promissory Note

• Author: Gregory M Stein - Michael D Goodwin - Morton P Fisher Jr
• Pages: 512-516

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.

PROMISSORY NOTE

$ , 20__

FOR VALUE RECEIVED, ,

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

Agreement.

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