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Non-Recourse and Non-Negotiable Promissory Note

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Non-Recourse and Non-Negotiable Promissory Note Powered By Docstoc
					This is a document that holds certain property as collateral or security for the repayment
of a loan. This particular promissory note is non-recourse in nature, which means that
the lender can only look to the items held as security for satisfaction of the note. If the
items held as collateral are worth less than the balance of the loan, the borrower cannot
institute any further proceedings against the borrower. This document should be used
by individuals or entities that want to provide security for a loan without recourse for the
lender.
                NON-RECOURSE, NON-NEGOTIABLE PROMISSORY NOTE



$______________                                                           _________, _______
                                                                               ____ , 20__


        FOR VALUE RECEIVED, the undersigned, ("Maker"), promises to pay to
__________________ ("Payee"), at __________________________, or such other place as
Payee may from time to time designate, the principal sum of _________________ ($_______),
with interest at the rate of __% per annum, payable as follows:

         [Insert Payment Terms]

       1.       Optional Prepayment. Maker may prepay all or any portion of the principal
balance of this Note at any time without premium or penalty.

       2.      Nonrecourse Nature. Payee shall look only to the items held as security for this
Note for the satisfaction of this Note, and Maker shall have no personal liability under this Note.

         3.     Default and Acceleration. Upon the occurrence of any Event of Default (as
defined below), this Note shall be in default and Payee shall have the right, at Payee's sole option,
to declare all amounts owed under this Note immediately due and payable. Each of the following
is an "Event of Default": (a) the failure of Maker to pay any portion of principal or interest when
due, which failure is not cured within three calendar days after written notice, (b) the entry of a
decree or order for relief in respect of Maker under Title 11 of the United States Code, as now
constituted or hereafter amended, or any other applicable Federal or state bankruptcy, insolvency
or similar law, or appointing a receiver, trustee, or custodian of Maker or for any substantial part
of Maker's property, which decree or order is not stayed or set aside within 60 days thereafter, (c)
the filing by Maker of a petition, answer or consent seeking relief under Title 11 of the United
States Code, as now constituted or hereafter amended, or the consent by Maker to the institution
of proceedings thereunder or to the appointment of a receiver, trustee or custodian, and (d)
default in the performance of any obligation of Maker set forth in any of the instruments and
agreements given for the purpose of securing this Note.

       4.     Attorneys' Fees and Costs. In the event an action is brought to enforce this Note,
Maker agrees to pay all reasonable attorneys' fees and costs of collection incurred in connection
therewith.

       5.      Waivers. None of the provisions of this Note and none of Payee's rights or
remedies on account of any past or future defaults shall be deemed to have been waived by
Payee's acceptance of any past due payment or by any other indulgence granted by Payee to
Maker.




© Copyright 2011 Docstoc Inc. registered document proprietary, copy not                  2
        6.     Governing Law. This Note shall be governed by and construed in accordance
with the laws of the State of _________________, excluding the conflicts of laws provisions
thereof.

        7.     Non-Negotiable Character. This Note is non-negotiable, and may not be sold,
transferred, negotiated or otherwise transferred by Payee without the prior written consent of
Maker.

                                                      ___________________________________

                   THIS NOTE IS SECURED BY A SECURITY AGREEMENT
                 OF EVEN DATE HEREWITH BETWEEN MAKER AND PAYEE.




© Copyright 2011 Docstoc Inc. registered document proprietary, copy not                3
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Description: This is a document that holds certain property as collateral or security for the repayment of a loan. This particular promissory note is non-recourse in nature, which means that the lender can only look to the items held as security for satisfaction of the note. If the items held as collateral are worth less than the balance of the loan, the borrower cannot institute any further proceedings against the borrower. This document should be used by individuals or entities that want to provide security for a loan without recourse for the lender.