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If you are offering a line of credit to a customer, secure your interest with this Line of Credit Promissory Note form. - The Note allows for multiple advances, up to a specified maximum amount. - Interest on the secured amount is simple interest, accruing monthly. - The Note is secured by a mortgage on the Borrower's property. - There is no prepayment penalty. - This is a generic legal template which is not specifically written for any country, state or province. This Line of Credit Promissory Note form is provided in MS Word format, and is easy to edit and use.
LINE OF CREDIT PROMISSORY NOTE PRINCIPAL: $[principal amount] DATE: [date of note] BORROWER: [name of borrower] [full address of borrower] LENDER: [name of lender] [full address of lender] FOR VALUE RECEIVED, [BORROWER] (the “Borrower”) promises to pay to the order of [LENDER] (the “Lender”) the principal sum of [PRINCIPAL AMOUNT IN TEXT] DOLLARS ($[principal amount], or so much thereof as may be disbursed to or for the benefit of the Borrower by Lender in Lender’s sole and absolute discretion. It is the intent of the Borrower and Lender hereunder to create a line of credit agreement between Borrower and Lender whereby Borrower may borrow up to $[maximum borrowing limit] from Lender; provided, however, that Lender has no obligation to lend Borrower any amounts hereunder and the decision to lend such money lies in the sole and complete discretion of the Lender. INTEREST & PRINCIPAL The unpaid principal of this line of credit shall bear simple interest at the rate of [interest rate] percent (__%) per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances made hereunder. Interest on the unpaid balance of this Note shall accrue monthly but shall not be due and payable until such time as when the principal balance of this Note becomes due and payable. The principal balance of this Note shall be due and payable on [due date]. There shall be no penalty for early repayment of all or any pa
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