VIEWS: 37 PAGES: 2 CATEGORY: Legal Forms POSTED ON: 5/19/2010
Are you lending a significant sum of money to a person or a company? Secure the repayment of the loan with this Installment Promissory Note with Prepayment Premium. - Repayment. The borrower will repay the loan principal and interest by a series of regular fixed installment payments. - Collateral. The loan is secured by collateral belonging to the borrower. - Early Prepayment. The lender will charge a prepayment premium (fee) if the borrower opts to prepay the loan before the due date. - Acceleration. The Note contains an acceleration clause, i.e. if the borrower defaults in making a payment or becomes bankrupt or insolvent, the entire balance together with interest becomes immediately due and payable. This Installment Note with Prepayment Premium template is available as a downloadable MS Word document, and is generic in nature (not country specific).
SECURED INSTALLMENT NOTE (NON-VARIABLE PAYMENTS & PREPAYMENT PREMIUM) PRINCIPAL: $[principal amount] (the “Principal”) DATE: [date] 1. Terms of Note: For value received, [Name(s) of Party(ies) making the note] (the “Maker”) [if more than one: jointly and severally] promise to pay to [Name of Lender / Note Holder] (the “Holder”), or order, the above-noted Principal, together with interest thereon or so much thereof as shall from time to time remain unpaid at the rate of [INTEREST RATE] (___%) PER CENT per year, in ________ monthly installments of $###.## each, to be made on the ______ day of each and every month, commencing on [insert first payment date] and continuing thereafter until [insert last payment date], at [insert full address of holder, including zip/post code] or at such other place as the holder hereof may designate in writing from time to time. 2. Prepayment of Note: If this Note is prepaid in full before [insert date], the Holder shall charge the Maker $###.## [or set out percentage of principal, if applicable], to cover the acquisition costs of the Holder. 3. Acceleration on Default: If there is any default in the payment of any installment of principal or interest under this Note, the entire unpaid balance of Principal and interest hereunder shall be payable immediately at the election of the Holder. 4. Acceleration on Insolvency of Maker: If the Maker shall be adjudged a bankrupt, or file a petition in bankruptcy, or have a petition in bankruptcy filed against it, this Note shall become due and payable immediately without demand or notice. 5. Collateral: To secure the payment of this Note, the Maker has pledged to the Holder the following property (the “Collateral”): Item Description & Serial # (if any) Market Value The Maker also pledges as collateral any additions to or substitutions for the Collateral, together with all money and other property held by the Holder on deposit or otherwise for the account of the Maker or in which the Maker has an interest. 6. Additional Collateral: The Holder may call for additional Collateral if, in the Holder’s sole determination, additional Collateral is necessary for its protection. If the Maker fails to supply the additional Collateral as requested with
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