PROMISSORY NOTE (CANADA)
DESCRIPTION:
This is a written promise by one party to repay a sum of money (Principal
+ Interest) to another party on demand or at a certain time in the future
This Promissory Note can be negotiable or non-negotiable under the Bills
of Exchange Act
JURISDICTION:
Canada
NUMBER OF PAGES:
3
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PROMISSORY NOTE (CANADA)
TABLE OF CONTENTS
#
Section
Amount
Date
1
Promise to Pay
2
When Principal Payable
3
Interest
4
Maximum Rate of Interest
5
Place to Pay
6
Application of Payments
7
Pre-Payment of Principal
8
Acceleration after Default
9
Costs
10 Waiver of Benefits
11 Negotiable Instrument
12 General Terms
Execution
Description
Identifies the amount of Principal
Identifies the date of the Promissory Note
Maker makes a promise to pay Holder a
sum of money (Principal) plus Interest
Identifies how Principal will be repaid
(e.g. on demand, at a certain time, in
instalments, etc.)
Identifies annual rate of interest, how it is
calculated and payable
Notes that, if interest charged is in excess
of maximum rate of interest, then it shall
be applied to reduce Principal
Identifies where payments are to be made
Notes that payments will be first applied
to accrued and unpaid Interest and then to
Principal
Allows Maker to make pre-payment of
Principal without notice, penalty, or
bonus
Explains that, upon default, entire unpaid
Principal becomes immediately due and
payable
Maker agrees to pay Holder’s costs for
enforcing the Promissory Note
Maker waives certain rights and benefits
under the Bills of Exchange Act
Acknowledges whether the Promissory
Note is or is not a Negotiable Instrument
under the Bills of Exchange Act
Acknowledgement, currency, notice,
governing law, survival, waiver, etc.
The Maker signs before a witness (the
presence of a witness is recommended,
though not required)
PROMISSORY NOTE
Amount: $ [insert amount in numbers]
Dated: [insert date]
1. Promise to Pay. [insert name(s) of person(s) that promise(s) to pay] (the “Maker”), hereby
promises to [insert “pay bearer”, “pay to [insert name of Holder] only”, “pay to, or to the
order of, [insert name of Holder]”, “pay to, or to the order of, [insert name of Holder] or
bearer”, “pay to the order of [insert name of Holder]”, “pay to the order of [insert name of
Holder] or bearer”] (the “Holder”) the sum of [insert amount of Principal in letters] dollars
([insert amount of Principal in numbers]) (the “Principal”), together with Interest (as defined
below).
Insert one of the following for Section 2:
2. When Principal Payable. The Principal shall become due and be paid in full on demand by
the Holder. For greater certainty, the Holder’s unfettered right to demand repayment is not
conditional upon the Maker defaulting on this Promissory Note.
2. When Principal Payable. The Principal shall become due and be paid in full within [insert
number of days in letters] ([insert number of days in numbers]) days of demand by the
Holder. For greater certainty, the Holder’s unfettered right to demand repayment is not
conditional upon the Maker defaulting on this Promissory Note.
2. When Principal Payable. The Principal shall become due and be paid in full on [insert
date].
2. When Principal Payable. The Principal shall be repaid in [insert number of equal
installments in letters] ([insert number of equal installments in numbers]) equal periodic
installments on the [insert day of the month in letters] ([insert day of the month in numbers])
day of the month in each year starting from the date first stated above and continuing until
the Principal is repaid in full.
2. When Principal Payable. The Principal shall become due and be paid in installments as
follows:
#
1
2
3
4
5
Date of Payment
[insert date]
[insert date]
[insert date]
[insert date]
[insert date]
Amount of Payment
[insert payment]
[insert payment]
[insert payment]
[insert payment]
[insert payment]
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