Letter of Default on Promissory Note

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date and Reference

Date: {{date}}

Reference: {{reference_number}}

Recipient Information

To: {{borrower_name}}

{{borrower_address}}

Subject: Notice of Default on Promissory Note

Dear {{borrower_name}},

Notification of Default

This letter serves as a formal notification that you are in default of your obligations under the Promissory Note dated {{promissory_note_date}} (the “Note”) between {{company_name}} (the “Lender”) and {{borrower_name}} (the “Borrower”).

The specific event of default is as follows: {{description_of_default, e.g., 'failure to make the scheduled payment due on {{due_date}}' or 'breach of covenant outlined in clause {{clause_number}}'}}.

Amount Due and Remedies

As a direct result of this default, the total outstanding amount due and payable under the Note is {{total_amount_due}}, which includes the principal amount of {{principal_amount}}, accrued interest of {{accrued_interest_amount}}, and any applicable late fees as per the terms of the Note.

Please be advised that the Note stipulates that upon an Event of Default, the entire outstanding principal balance, together with all accrued interest and other charges, shall become immediately due and payable without further notice or demand.

Cure Period

You have a period of {{cure_period_days}} days from the date of this letter to cure the aforementioned default by remitting the full outstanding amount of {{total_amount_due}} to {{company_name}}.

Payment can be made via {{payment_method, e.g., 'electronic funds transfer to account number {{bank_account_number}} at {{bank_name}}' or 'cheque payable to {{company_name}}'}}.

Consequences of Failure to Cure

Should you fail to cure the default within the stipulated {{cure_period_days}}-day period, {{company_name}} reserves all its rights and remedies available under the Promissory Note and applicable law. This may include, but is not limited to, instituting legal proceedings to recover the debt, enforcement of security (if any), and reporting the default to credit bureaus, which may negatively impact your credit rating.

We urge you to take immediate action to rectify this situation and avoid further legal action.

Contact Information

Please contact {{contact_person_name}} at {{contact_person_phone}} or {{contact_person_email}} immediately to discuss this matter and make arrangements for payment.

We are open to discussing a mutually agreeable solution, provided you engage with us promptly to resolve this default.

Signature

Sincerely,

_________________________

{{authorized_signatory_name}}

{{authorized_signatory_title}}

For: {{company_name}}