Promissory Note for Multiple Advances | Canada

Secure repayment of a loan with this Demand Promissory Note template for Canada.

What is a demand promissory note?

As its name suggests, a demand note is a promissory note that is payable on demand. Because there is no specified repayment date, it allows the borrower less flexibility and is typically used for short-term lending.

What are terms of this Promissory Note template?

This is a simple form of Demand Promissory Note, which accrues interest at a specified rate, and can be prepaid without penalty.

Where can I use this form?

You can use this Demand Promissory Note anywhere in Canada.

Format

The Promissory Note form is a downloadable MS Word document. It is fully editable and can be used as often as you like. Like all the forms available from MegaDox.com, this form has been prepared by legal professionals, and not by AI.

Secure the repayment of a loan made in Canada with this Promissory Note (for interest only).

This Promissory Note template is designed to help secure the repayment of interest on a loan made within Canada. It provides a clear framework for both lenders and borrowers regarding the repayment terms and expectations.

Deferred Repayment of Principal

Under this Note, the borrower is required to make payments that cover only the accrued interest on the loan. No payments toward the principal amount are necessary until the specific date outlined in the Note. This allows the borrower to manage cash flow by deferring principal repayments until a later time.

Schedule of Interest Payments

Interest payments are to be made in arrears, following a regular payment schedule as defined in the terms of the Note. This ensures that the lender receives compensation for the use of their funds over the period of the loan.

Principal Repayment and Prepayment

The principal sum of the loan may be repaid at any time chosen by the borrower, without incurring any penalty or additional fee. This flexibility benefits the borrower, allowing for early repayment if desired.

Format and Availability

This template is provided in Microsoft Word format, making it easy to edit and customize to suit the specific details of your transaction.

Jurisdiction

This Promissory Note is intended exclusively for use in Canada.

Are you making an interest-free loan to a friend or family member in Canada? Have them sign this Demand Promissory Note.

When would I need to use this Promissory Note form?

If you lend money to a family member or close friend, you may decide not to charge them interest on the loan balance. Even so, it is important to secure a formal commitment from the borrower to repay the loaned amount.

Getting a Promissory Note signed ensures that the borrower is legally obligated to repay the principal.

When and Where to Use the Form

• This type of Promissory Note is most frequently used when the lender and borrower share a close relationship, such as family members.
• This Demand Promissory Note is intended for use within Canada. It is suitable for all provinces and territories except Québec, where a different French-language form may be needed.

Repayment Terms

Because the loan is interest-free, the borrower is required only to return the principal amount borrowed. No interest will accrue on the loan.

Format of the Template

The Promissory Note for Interest-Free Loan form is available as a digital download in MS Word format and is easy to fill in with your details.

Use this downloadable Grid Promissory Note to secure multiple advances of loan proceeds anywhere in Canada.

What is a grid note?

A grid note, also known as a term note, is used to secure multiple advances of loan proceeds. This document is suitable for use in various lending scenarios where funds are released in stages rather than as a single lump sum.

When would I use this grid promissory note?

This Grid Note is structured to cover multiple advances or stages of funding. It is particularly relevant in cases where the lending agreement specifies that loan proceeds will be disbursed in separate instalments over time.

This form of Note is frequently utilized for construction financing. In such contexts, numerous advances of loan proceeds are often required as the project progresses through various phases.

Format and Legal Jurisdiction

Provided in MS Word format, the Grid Note is easy to download, fill in with the necessary details, and print for use in your lending transactions.

This form can be used across Canada, making it a versatile tool for borrowers and lenders engaged in lending agreements nationwide. A French-language version may be required in Quebec.

Are you loaning money to a person or a company in Canada? Secure your interest as a creditor with this Promissory Note and Guarantee.

Repayment Terms

The borrower agrees to pay the secured amount by monthly payments (not necessarily equal payments).

Guarantee

• The Note includes a guarantee of payment by a guarantor.
• The guarantor also agrees to ensure that the creditor receives a monthly installment payment equal to a specified percentage of the guarantor's net revenue.

Format and Legal Applicability

This Promissory Note and Guarantee form is available as a downloadable and fully customizable MS Word file. It is intended for use only in Canada.