Installment Note Bank Deposit as Collateral

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

INSTALLMENT NOTE

Principal Amount: {{principal_amount}}

Date: {{date}}

FOR VALUE RECEIVED, the undersigned, {{borrower_name}} (hereinafter “Borrower”), with an address at {{borrower_address}}, promises to pay to the order of {{lender_name}} (hereinafter “Lender”), with an address at {{lender_address}}, the principal sum of {{principal_amount}}, together with interest thereon at the rate of {{interest_rate}}% per annum.

Payment Schedule

The principal and interest shall be paid in {{number_of_installments}} consecutive monthly installments of {{installment_amount}} each, commencing on {{first_payment_date}} and continuing on the same day of each subsequent month until the entire principal sum and accrued interest are fully paid. All payments shall be made to the Lender at the address specified above, or at such other place as the Lender may designate in writing.

Collateral

To secure the repayment of this Installment Note, the Borrower hereby pledges and grants to the Lender a security interest in a bank deposit account held in the name of {{account_holder_name}} at {{bank_name}}, Account Number: {{bank_account_number}} (hereinafter “Collateral Account”). The balance in the Collateral Account shall be maintained at a minimum of {{minimum_collateral_balance}} throughout the term of this Note. The Borrower agrees to execute any additional documents necessary to perfect this security interest.

Default

The occurrence of any of the following shall constitute a default under this Note:

a) Failure to pay any installment of principal or interest when due.

b) Failure to maintain the minimum balance in the Collateral Account as specified herein.

c) Any material breach of any other term or condition of this Note.

Upon the occurrence of an event of default, the entire unpaid principal sum and accrued interest shall, at the option of the Lender, become immediately due and payable without notice or demand. The Lender shall also have the right to exercise all remedies available under applicable law and this agreement, including but not limited to, the right to set-off against and withdraw funds from the Collateral Account.

Prepayment

The Borrower shall have the right to prepay the principal sum, in whole or in part, at any time without penalty.

Governing Law

This Installment Note shall be governed by and construed in accordance with the laws of {{jurisdiction}}.

Waiver

No waiver of any provision of this Note shall be effective unless made in writing and signed by the Lender. No waiver of any breach shall be deemed a waiver of any subsequent breach.

Notices

Any notice required or permitted to be given under this Note shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or by reputable overnight courier service, to the addresses set forth above.

Entire Agreement

This Note constitutes the entire agreement between the Borrower and the Lender with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

Signatures

IN WITNESS WHEREOF, the parties have executed this Installment Note as of the Date first written above.

BORROWER:

_____________________________

{{borrower_name}}

LENDER:

_____________________________

{{lender_name}}