Installment Note Using Deposit Account as Collateral

Commercial lenders, prepare an Installment Promissory Note with this template form, under which a borrower agrees to set up a deposit account with the lender as collateral for the loan.

• The borrower must make a minimum deposit in the account at regular intervals (such as monthly), as security against default in repayment of the loan.
• The Note contains an acceleration clause, so that if the borrower defaults in a payment or becomes bankrupt or insolvent, the entire balance together with interest becomes immediately due and payable.
• The Note also contains a provision that the borrower must pay liquidated damages if the borrower defaults in making a payment.

This Installment Note Using Deposit Account as Collateral is fully editable so you can include all the specifics of your transaction.