Checklist Items to Consider for Drafting a Promissory Note

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Identification of Parties

Clearly identify the Lender (Payee) and the Borrower (Maker) including full legal names, addresses, and registration numbers (if applicable).

Fields: {{lender_name}}, {{lender_address}}, {{lender_registration_number}}, {{borrower_name}}, {{borrower_address}}, {{borrower_registration_number}}

2. Principal Amount and Currency

State the exact principal amount of the loan in both figures and words. Specify the currency.

Fields: {{principal_amount_figures}}, {{principal_amount_words}}, {{currency}}

3. Interest Rate

Clearly define the interest rate. Specify whether it is fixed or variable, and how it will be calculated (e.g., annual, monthly, compound). Include details on any default interest rates.

Fields: {{interest_rate_percentage}}, {{interest_rate_type}}, {{interest_calculation_method}}, {{default_interest_rate_percentage}}

4. Repayment Schedule

Outline the repayment terms, including the due date for the principal and interest. Specify whether payments will be made in installments or as a lump sum. If installments, detail the frequency and amount of each payment.

Fields: {{repayment_due_date}}, {{repayment_type}}, {{installment_amount}}, {{installment_frequency}}, {{number_of_installments}}

5. Payment Methods and Details

Specify the acceptable methods of payment and any bank account details for remittances.

Fields: {{payment_methods}}, {{bank_name}}, {{account_number}}, {{swift_code}}

6. Late Payment Penalties

Clearly state any penalties or fees that will be imposed for late payments.

Fields: {{late_payment_penalty_amount}}, {{late_payment_penalty_calculation_method}}

7. Events of Default

List specific events that would constitute a default by the Borrower (e.g., non-payment, bankruptcy, breach of other agreements).

Fields: {{event_of_default_1}}, {{event_of_default_2}}, {{event_of_default_3}}

8. Acceleration Clause

Include a clause that allows the Lender to demand immediate repayment of the entire outstanding balance upon an event of default.

Fields: {{acceleration_clause_details}}

9. Governing Law and Jurisdiction

Specify the governing law of the promissory note and the jurisdiction for any disputes that may arise.

Fields: {{governing_law}}, {{jurisdiction}}

10. Signatures

The promissory note must be signed by the Borrower and, if required, by a witness. Include spaces for printed names, titles, and dates.

_________________________

Borrower Signature

Name: {{borrower_signer_name}}

Title: {{borrower_signer_title}}

Date: {{signature_date}}

_________________________

Witness Signature (if applicable)

Name: {{witness_signer_name}}

Title: {{witness_signer_title}}

Date: {{witness_signature_date}}