Promissory Note with Monthly Payments, No Penalty | 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.

Overview of Canadian Term Promissory Note Template

This Term Promissory Note template is designed specifically for use within Canada. It provides a secure method for documenting the repayment of a loan and is suitable for individuals or businesses seeking a straightforward solution for loan agreements.

Repayment Structure

The Note permits the borrower to repay the loan amount through regular payments. Each payment consists of a blended portion of principal and interest, ensuring a consistent payment schedule throughout the loan period.

Interest Calculation

Interest on the outstanding loan balance is calculated monthly, and the total interest is compounded annually. This approach offers clarity in how interest accrues over the duration of the loan.

Format and Reusability

This template is a reusable legal form available in Microsoft Word format, allowing for easy editing and customization to meet specific needs. Once purchased, it can be downloaded and utilised as often as required, making it a convenient option for ongoing or future loan agreements.

Jurisdiction

This template is intended for use only in Canada and should not be used for loans outside Canadian jurisdiction.

Purpose of Promissory Note for Interest Only

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

Interest-Only Payment Terms

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. Users are encouraged to modify the document as necessary to reflect the terms agreed upon by both parties.

Jurisdiction

This Promissory Note is intended exclusively for use in Canada.

Prepare the Annual Resolutions of the shareholders and directors of a Canadian business corporation with this package of forms.

• In small privately held corporations, it is common to pass Resolutions instead of holding a formal annual meeting, to deal with all the business that must be covered in the corporation's annual meeting.
• This package is a convenient time-saver for corporate lawyers and paralegals. It contains the following template forms:

1. 1. Resolution of the directors appointing the corporate officers and approving the financial statements.
   2. Resolution of the voting shareholders approving the financials and electing the directors.
   3. Resolution of all of the shareholders appointing auditors or waiving the audit requirement.
   4. Cover letter to be sent by a law firm to its corporate clients, enclosing the forms and giving instructions to the client.

• This package of Canada Annual Resolutions Forms can be used for federal companies and in Alberta, British Columbia, Saskatchewan, Ontario, New Brunswick, Nunavut, Yukon and Northwest Territories. French language translation required for Quebec.

Canadian lenders can use this downloadable Loan and Charging Agreement to prepare loan documents for a borrower.

• The template includes both the Loan Agreement and a promissory note for the principal amount of the loan plus interest.
• The borrower agrees to register an encumbrance against title to real estate owned by the borrower, as collateral security for the loan.
• If the borrower defaults in repaying the loan, title to the property will be transferred to the lender.
• Available in MS Word format.
• Intended to be used only in Canada.