Canada Revolving Loan Promissory Note by Megadox

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Canadian lenders, prepare a Promissory Note to support a Revolving Loan Agreement with this template form.
This type of Note is typically used to secure construction financing. Provisions of the Note include:
- maturity date,
- interest rate,
- events of default,
- waiver,
- expenses and costs,
- legal jurisdiction.
This Canada Revolving Loan Promissory Note form in MS Word format, and can be easily edited to fit your exact circumstances.

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									                          REVOLVING LOAN PROMISSORY NOTE

                                      [FULL NAME OF LENDER]
                                        [ADDRESS OF LENDER]


Principal: CAN$_________

Date: _________________

FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER(S)], (collectively, the
“Borrowers”), hereby jointly and severally promise to pay to the order of [NAME OF LENDER], (the
“Lender”), at its office at ______________________________ or such other address as the Lender shall
specify in writing to the Borrowers, in lawful money of Canada and in immediately available funds, the
principal amount of [AMOUNT OF LOAN IN WORDS] [($###,###.##)] or the aggregate unpaid
principal balance of all amounts from time to time outstanding hereunder in accordance with the
provisions of [ENTER NAME OF REVOLVING LOAN AGREEMENT], dated as of [DATE OF
REVOLVING LOAN AGREEMENT], among the Lender and the Borrowers (as at any time amended,
supplemented or modified, the “Revolving Loan Agreement”), as set forth in the Schedule to Revolving
Loan Promissory Note (the “Schedule”) attached hereto as Exhibit A and by this reference incorporated
herein, whichever is less, together with accrued, unpaid interest thereon, on [DATE LOAN MATURES]
(the “Maturity Date”), or as such Maturity Date may be extended from time to time by agreement among
the Lender and the Borrowers. This Revolving Loan Promissory Note is the “Revolving Loan Promissory
Note” referred to in the Revolving Loan Agreement, the terms and conditions of which hereby are
incorporated herein by reference. Capitalized terms not otherwise defined in this Revolving Loan
Promissory Note shall have the meanings specified in the Revolving Loan Agreement.

Interest under this Revolving Loan Promissory Note (computed on the basis of actual days elapsed and a
year of [360/365] days) shall accrue on the outstanding principal balance of this Revolving Loan
Promissory Note from the date hereof until the Maturity Date, at the rate of [PERCENT IN WORDS]
Percent [(##%)] per annum. The Borrowers will repay in full all principal, accrued, unpaid interest and
other charges outstanding under this Revolving Loan Promissory Note no later than the Maturity Date.

This Revolving Loan Promissory Note is secured by a Security Agreement of even date herewith (the
“Security Agreement”) among the Borrowers and the Lender. Reference hereby is made to the Security
Agreement for a description of the collateral pledged pursuant thereto, and any Lender of this Revolving
Loan Promissory Note is entitled to the benefit of the security interest provided therein.

The occurrence and continuance of any one or more of the following events shall constitute an “Event of
Default” hereunder:

        (a)     the Borrowers fail to pay any amount due under this Revolving Loan Promissory Note
                within [NUMBER IN WORDS] [(##)] days of the date when due;

        (b)     the Borrowers fail to observe, perform or comply with any other covenant, agreement or
                term contained in this Revolving Loan Promissory Note, and, if subject to remedy, the
                same is not remedied within 30 days after written notice from the Lender; provided,
                however, that such 30-day period shall be extended for an additional 30 days so long as
                within such initial 30-day period the Borrowers have commenced to cure and are
                proceeding with due diligence to cure such failure; or
                                                    -2-



        (c)     either Borrower makes a general assignment for the benefit of creditors; any proceeding
                is instituted by or against either Borrower seeking to adjudicate it a bankrupt or
                insolvent, seeking liquidation, winding up, reorganization, arrangement, adjustment,
                protection, relief or composition of it or its debts under any law relating to bankruptcy,
                insolvency or reorganization or relief of debts, or seeking the entry of an order for relief
                or the appointment of a receiver, trustee or other similar official for it or for it or for any
                substantial part of its property, provided that, in any such case, if the same is dismissed
                or vacated within 60 days of being instituted, then any such default shall be deemed
                cured; or either Borrower takes any corporate action to authorize any of the actions set
                forth above.

Upon any “Event of Default” as defined herein, the Lender may, at it sole option, declare the entire
amount of principal and accrued, unpaid interest on this Revolving Loan Promissory Note immediately
due and payable, by written notice to the Borrowers, in which event the Borrowers immediately shall pay
to the Lender the entire unpaid principal balance of this Revolving Loan Promissory Note together with
accrued, unpaid interest thereon to the date of such payment. No delay or omission of the Lender to
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