Promissory Note, Fixed Term, Variable Rate of Interest, Interest Only Until Maturity, Acceleration of Payment In The Event Of Default in Payment
[AMOUNT OF LOAN, ex. $20,000.00] Due: [MATURITY DATE OF LOAN, ex. July 31, 2002]
FOR VALUE RECEIVED, the undersigned, [BORROWER NAME] (the “Borrower”), hereby acknowledges itself indebted to [LENDER NAME] (the “Lender”) and promises to pay to or to the order of the Lender at [ADDRESS OF LENDER] or as otherwise directed in writing by the Lender, the principal sum of [AMOUNT OF LOAN, ex. $20,000.00] in lawful money of [CURRENCY, ex. Canada or United States of America] with interest thereon at a variable rate per annum equal to the rate of interest commonly known as the prime rate of interest announced from time to time by [NAME OF LENDER’S BANK] as a reference rate then in effect for determining interest rates on commercial loans plus [AMOUNT OVER PRIME RATE, ex. 2.0%], calculated and payable monthly, not in advance, on the 1st day of each and every month, and both before and after demand, maturity, default and judgment until paid.
The principal sum and interest thereon shall be due and payable as follows:
1. Interest shall be paid monthly on the last business day of each month; and
2. The entire principal sum and all interest accrued thereon shall be paid on [MATURITY DATE OF LOAN, ex. July 31, 2002].
In the event of default in payment of any amount of principal or interest under this promissory note, the entire remaining principal sum and all interest accrued shall, at the option of the Lender, become immediately due and payable without notice or demand.
The Lender may assign all of its right, title and interest in, to and under this promissory note. All payments required to be made hereunder shall be made by the Borrower without any right of set-off or counterclaim.
DATED: [DATE OF DOCUMENT, ex. July 1, 1998]
Witness Seller Name