Free Promissory Note

Answer a few simple questions Print and download instantly It takes just 5 minutes

Free Promissory Note

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Promissory Note

Collateral


Collateral



Frequently Asked Questions
When should collateral be used?Collateral is an asset or property offered by the borrower to secure repayment of a loan.

Securing the Promissory Note with collateral allows the lender to receive compensation if the borrower fails to make payments. It's most useful when there is a high risk the borrower will default or there is a substantial amount being loaned.

If the loan is not secured with collateral, the lender will need to go to court before seizing any of the borrower's assets.
Yes, it is a good idea for the lender to register their interest in the collateral on the Personal Property Securities Register (PPSR). Registering their interest gives the lender a better chance of recovering any unpaid loan amounts if the borrower defaults. The lender can register their interest on the PPSR online.

If the collateral being used is land, a house or other building, or a ship longer than 24 metres the lender's interest cannot be registered on the PPSR.
Can I use real estate or land as collateral?No, you should not use real estate or land as collateral. This Promissory Note will not give the lender a valid security interest in the real estate or land.


Your Promissory Note

Update Preview
This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Promissory Note Page of
Page of

PROMISSORY NOTE
(this "Note")


         


         

Borrower:

__________ of ______________________________________ (the "Borrower")

Lender:

__________ of ______________________________________ (the "Lender")

Principal Amount:      $_____________ NZD

  1. FOR VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal sum of $_____________ NZD, without interest payable on the unpaid principal, beginning on 29 March 2020.
  2. This Note will be repaid in full on 29 March 2020.
  3. The Borrower shall be liable for all costs, expenses and expenditures incurred including, without limitation, the complete legal costs of the Lender incurred by enforcing this Note as a result of any default by the Borrower and such costs will be added to the principal then outstanding and shall be due and payable by the Borrower to the Lender immediately upon demand of the Lender.
  4. If any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected, impaired or invalidated as a result.
  5. This Note will be construed in accordance with and governed by the laws of New Zealand.
  6. This Note will enure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of the Borrower and the Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

IN WITNESS WHEREOF the parties have duly affixed their signatures under seal

SIGNED, SEALED, AND DELIVERED
this ________ day of ________________, ________.

   


_______________________________
__________

     


SIGNED, SEALED, AND DELIVERED
this ________ day of ________________, ________.

   


_______________________________
__________

     
This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Loading ...
Loading ...

Note: Your initial answers are saved automatically when you preview your document.
This screen can be used to save additional copies of your answers.