Installment Note Bank Deposit as Collateral

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Installment Note Bank Deposit as Collateral

Installment Note Bank Deposit as Collateral

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

INSTALLMENT NOTE – BANK DEPOSIT AS COLLATERAL

Principal Amount: {{principal_amount}}

Date: {{date}}

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

TERMS OF REPAYMENT

The principal sum and accrued interest shall be payable in {{number_of_installments}} ({{number_of_installments_words}}) equal consecutive monthly installments of {{installment_amount}} ({{installment_amount_words}}) each. The first installment shall be due on {{first_payment_date}}, and subsequent installments shall be due on the {{day_of_month}} day of each month thereafter until the entire principal and interest are paid in full. All payments shall be made to the Lender at the address stated 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, assigns, and grants a security interest to the Lender in a bank deposit account held at {{bank_name}}, Account Number: {{bank_account_number}} (hereinafter “Collateral Account”). The balance in the Collateral Account shall at all times maintain a minimum balance of {{minimum_collateral_balance}} until this Installment Note is fully repaid. The Borrower shall provide the Lender with full access to statements and information related to the Collateral Account upon request.

DEFAULT

Upon the occurrence of any of the following events (each, an “Event of Default”):

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;

c. Any material breach by the Borrower of any term, covenant, or agreement contained in this Note;

Then, 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 presentment, demand, protest, or further notice of any kind.

RIGHTS OF LENDER UPON DEFAULT

Upon the occurrence of an Event of Default, the Lender shall have the right to immediately set off and apply all or any portion of the funds in the Collateral Account against the amounts due and owing under this Installment Note. The Borrower hereby irrevocably authorizes the Lender to take such action without prior notice. The Lender’s rights and remedies hereunder are cumulative and may be exercised singly or concurrently, and are not in lieu of any other rights or remedies available at law or in equity.

GOVERNING LAW

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

WAIVER

The Borrower and all endorsers and guarantors hereof waive presentment, demand for payment, notice of dishonor, protest, and notice of protest. No failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or future exercise thereof or the exercise of any other right.

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.

IN WITNESS WHEREOF

The Borrower has executed this Installment Note as of the date first written above.

_____________________________

{{borrower_name}}

Borrower

_____________________________

{{lender_name}}

Lender (Acknowledgment of security interest and terms)