This is an agreement between a borrower and a lender for the repayment of a loan on a
secured basis. Under this particular agreement, the borrower is required to make
periodic interest only payments and one final balloon payment for the principal of the
loan. In addition, the borrower grants the lender a security interest in certain property as
described under "Schedule A" to provide collateral for repayment. This agreement can
be used by individuals or small businesses that want to enter into a secured loan
agreement for interest only payments with one final balloon payment.
SECURED PROMISSORY NOTE – INTEREST ONLY WITH A BALLOON
FINAL PAYMENT
AMOUNT: $_______________ DATE:
___________, 201__
INTEREST RATE: _________
DUE DATE OF FINAL BALLOON PAYMENT: _________________
DUE DATES OF PERIODIC PAYMENTS
_____________________________________
{Instruction: SPECIFY DETAILS OF PERIODIC PAYMENTS DUE DATES; e.g.,
"ON THE FIRST OF EACH MONTH" or "ON JANUARY 15, APRIL 15, JULY 15,
AND OCTOBER 15 OF EACH YEAR.", etc.}
FOR VALUE RECEIVED, the undersigned ______________, [NAME OF
PERSON BORROWING MONEY] hereby promises to pay to the order of
_____________________ (hereinafter, the “Lender”) at
_____________________________ [ADDRESS OF LENDER] the principal sum
________________ ($___________) Dollars payable on demand, with interest thereon at
the rate of __________ percent (_____%) annually.
PERIODIC PAYMENT SHALL ALSO BE MADE on the interest to Lender in
equal installments of _______[PROVIDE AMOUNT OF THE PERIODIC
PAYMENTS], on ______________ [DATE OR DATES] and shall be delivered to the
address of the Lender. A lump payment in the amount of the principal amount of the
Loan plus any remaining interest shall be made on __________[DATE OF BALLOON
PAYMENT] at the address of the Lender.
THIS PROMISSORY NOTE is secured by an additional agreement executed by
the parties hereto on _____________201__ [DATE WHEN BORROWER PLEDGED
HIS OR HER PERSON PROPERTY AS SECURITY FOR THIS LOAN] whereby
the undersigned has pledged its/his/her interests in certain assets and undertaken certain
additional obligations, as are more fully set forth in “Schedule A,” attached.
{Instruction: This above clause may be deleted or crossed-out, if this Agreement will
be for a loan that is NOT secured by Borrower's personal property.}
PAYMENTS will be sent or delivered to Lender at
___________________________ [PROVIDE ADDRESS WHERE LENDER
WISHES TO RECEIVE PAYMENT, IF DIFFERENT FROM ADDRESS GIVEN
ABOVE]. Borrower will continue to send payments to this address, unless or until
Lender provides Borrower with a new address.
NO COURSE OF DEALING between the undersigned and the Lender or any
delay on the part of the Lender in exercising any rights hereunder shall operate as a
waiver of any rights of the Lender. All of the covenants, stipulations, promises and
agreements contained in this promissory note made by or on behalf of the undersigned
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shall bind his heirs, executors, administrators successors and assigns, whether so
expressed or not.
THE UNDERSIGNED MAY, at any time, without notice, bonus or penalty,
prepay or cause to be prepaid the whole or any part of the principal amount remaining
unpaid hereunder.
THIS PROMISSORY NOTE shall be governed by the laws of the Province/State
of ________________, which laws shall be applicable to the interpretation, construction
and enforcement hereof.
IN THE EVENT OF payment of interest or any other amounts secured by this
Promissory Note or upon the bankruptcy or insolvency of the undersigned or upon the
filing of a petition in bankruptcy against the undersigned or upon the making of a
proposal in bankruptcy by the undersigned, the whole of the monies (or any part thereof)
secured by this Promissory Note remaining unpaid shall, at the option of the Lender,
for