Movable Hypothec Promissory Note

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

MOVALBE HYPOTHEC PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned, {{borrower_name}} (hereinafter referred to as the “Borrower”), with registered address at {{borrower_address}}, promises to pay to the order of {{lender_name}} (hereinafter referred to as the “Lender”), with registered address at {{lender_address}}, the principal sum of {{currency}} {{principal_amount}} ({{principal_amount_words}}).

Repayment Terms

The principal sum, together with interest thereon at the rate of {{interest_rate}}% per annum, shall be payable in {{number_of_instalments}} ({{number_of_instalments_words}}) equal consecutive monthly installments of {{currency}} {{instalment_amount}} ({{instalment_amount_words}}), commencing on {{first_payment_date}} and continuing on the same day of each subsequent month until the entire principal and interest are paid in full. All payments shall be made to the Lender at {{lender_bank_details}} or such other address as the Lender may designate in writing.

Movable Hypothec

As security for the due and punctual payment of this Promissory Note, the Borrower hereby specially hypothecates and pledges in favour of the Lender the following movable property (hereinafter referred to as the “Hypothecated Property”):

Description of Property: {{description_of_movable_property}}

Location of Property: {{location_of_movable_property}}

Serial Number/Identification: {{serial_number_of_property}}

The Borrower warrants that it is the sole and unencumbered owner of the Hypothecated Property and that the same is free from any other charges, liens, or encumbrances.

Default

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

(a) Failure by the Borrower to pay any amount due under this Promissory Note on its due date;

(b) Breach by the Borrower of any other term or condition of this Promissory Note;

(c) Any representation or warranty made by the Borrower herein proving to be false or misleading in any material respect;

Then, and in any such event, the entire outstanding principal amount of this Promissory Note, together with all accrued interest and any other charges, shall, at the option of the Lender, immediately become due and payable without demand or notice.

Remedies on Default

Upon the occurrence of a Default Event, the Lender shall have the right, but not the obligation, to take possession of the Hypothecated Property, whether peaceably or otherwise, and to sell or dispose of the same in such manner as the Lender deems fit, without notice to the Borrower. The proceeds of sale shall be applied first in discharge of the costs of recovery and sale, and thereafter in satisfaction of the amounts due under this Promissory Note. Any surplus shall be paid to the Borrower, and any shortfall shall remain due and payable by the Borrower to the Lender.

Governing Law

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

Waiver

The Borrower hereby waives presentment for payment, demand, notice of dishonour, and protest.

Entire Agreement

This Promissory 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 Borrower has executed this Movable Hypothec Promissory Note on this {{day}} day of {{month}}, {{year}}.

_____________________________

Borrower's Signature

{{borrower_name}}

ID/Passport No.: {{borrower_id_number}}

_____________________________

Lender's Signature

{{lender_name}}

ID/Passport No.: {{lender_id_number}}

Witnessed by:

_____________________________

Witness Signature

{{witness_name}}

Address: {{witness_address}}

ID/Passport No.: {{witness_id_number}}