Promissory Note with Collateral Charge on Land | Canada

Secure the balance payable to the vendor under an asset purchase or rollover agreement with this Promissory Note form for Canadian businesses.

• No interest will accrue on the principal balance prior to default or maturity.
• The full amount outstanding will become due and payable on demand if the purchaser declares bankruptcy, ceases to do business, or otherwise defaults under the terms of the Note.
• The balance may be totally or partially prepaid without bonus or penalty.
• Available in MS Word format.
• Intended to be used only in Canada.

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

• The borrower agrees to pay the secured amount by monthly payments (not necessarily equal payments).
• 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.
• This form is available as a downloadable and fully customizable MS Word file.
• Intended for use only in Canada.

Overview of Promissory Note with Monthly Payments and Compound Interest

Monthly Payment Structure

The Promissory Note sets up a schedule of regular monthly payments for the borrower. These payments consist of both principal and interest amounts, which are to be repaid in equal installments each month throughout the loan term.

Calculation and Compounding of Interest

Interest on the outstanding loan balance is calculated and compounded on a monthly basis. This means that interest accrues on both the principal and any previously accumulated interest, resulting in a compounding effect over time.

Late Payment Provisions

If any portion of the principal or interest is not paid by the due date, the overdue amount will continue to bear interest at the same rate as the remaining loan balance. This ensures that late payments are subject to the same terms as regular payments.

Jurisdiction and Use

This Promissory Note template is suitable for use throughout Canada, with the possible exception of Quebec where a different French-language form may be required. The form is available as a downloadable, editable, and reusable legal template to accommodate various lending arrangements.