Letter of Default on Promissory Note

COMPANY LETTERHEAD

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

DATE

{{date}}

RECIPIENT INFORMATION

{{borrower_name}}

{{borrower_address}}

SUBJECT: NOTICE OF DEFAULT ON PROMISSORY NOTE - ACCOUNT NO. {{account_number}}

Dear {{borrower_name}},

NOTIFICATION OF DEFAULT

This letter serves as a formal notification that you are in default of the Promissory Note dated {{note_date}}, for the principal sum of {{original_amount}} (the "Note").

According to our records, you have failed to make the payment(s) due on {{due_date(s)}}, which constitutes an Event of Default as defined in Section {{section_number}} of the Promissory Note.

OUTSTANDING BALANCE AND IMMEDIATE PAYMENT DEMAND

As of the date of this letter, the total outstanding balance due under the Promissory Note is {{current_outstanding_amount}}, which includes:

Principal Amount: {{principal_due}}

Accrued Interest: {{accrued_interest}}

Late Fees: {{late_fees}}

Other Charges (if any): {{other_charges}}

Demand is hereby made for immediate payment of the full outstanding amount of {{current_outstanding_amount}} within {{number_of_days}} days from the date of this letter.

CONSEQUENCES OF NON-PAYMENT

Unless the full outstanding amount is received by {{payment_due_date}}, we will be compelled to exercise all rights and remedies available to us under the Promissory Note and applicable law. This may include, but is not limited to:

- Initiating legal proceedings to recover the debt.

- Reporting the default to credit bureaus, which could negatively impact your credit rating.

- Pursuing any collateral pledged to secure the Promissory Note.

- Charging additional interest, fees, and collection costs as permitted by the Promissory Note and law.

CONTACT INFORMATION

To discuss this matter or to make payment arrangements, please contact {{contact_person}} at {{contact_phone_number}} or {{contact_email_address}} immediately. Failure to communicate with us will result in further action without prior notice.

RESERVATION OF RIGHTS

Please be advised that this letter does not constitute a waiver of any rights or remedies available to us, all of which are expressly reserved.

SINCERELY

{{company_name}}

_________________________

{{authorized_signatory_name}}

{{authorized_signatory_title}}