Promissory Note with Guarantee
A Promissory Note is used when a Borrower borrows money from the Lender/Investor, from another person or from a Financial Institution. The Borrower agrees to repay the Loan according to the terms of the Promissory Note. If the Note is unsecured, there is no collateral other than the promise of the Borrower to pay back the Loan. Your Lawyer will draft any and all other clauses for your Project’s unique situations and circumstances.
Lenders/investor’s should consider their investment with caution because Loans to Independent Filmmakers/Producers are risky. As a debt instrument, a promissory note is not a security. The borrower is entitled to a return of his money plus interest.
A clause guaranteeing repayment of this promissory note is a Guarantee signed by another person or company. Depending upon your jurisdiction the Note may need legal registration. If the Borrower fails to repay the loan, the Lender can proceed against the Guarantor for repayment.
This Agreement is drafted in plain English that is easy to read and comprehend. This is a three page, fourteen clause legal Agreement. The Agreement may be filled in on your computer or printed out and filled in later.
We regularly receive feedback that we have successfully drafted our filmmaker contracts to be as complete as possible for all legal situations. However, should you experience a unique personal situation requiring the drafting of a special clause, please contact us at your convenience. Otherwise, you may be obliged to find a local entertainment lawyer experienced in the film making industry who will draft any and all other clauses for your Project’s unique situation or circumstance.
This Agreement is part of the Producer’s Deal, and the Investor’s Deal.
Promissory Note Installment Re-payments
Borrower Name: _____________________________________________
Principal Amount: ____________________________________________
Address for Payment: _________________________________________
Project Name: _______________________________________________
Project Genre: _______________________________________________
(film, music video, stage play, documentary etc.)
1. Annual interest rate on matured, unpaid amounts shall be the maximum amount permitted by the Laws of __________________________________.
(state, province, country)
2. This Note is due and payable with __________ monthly payments in total with each and every payment being an equal monthly payment of _____________ principle. The first such payment due and payable on the __________ day of _____________________, 20____, and a like installment shall be due and payable on the same day of each succeeding month thereafter until the total principal of __________________ is paid in full. If each payment is not paid on time, the remaining balance will be subject to the maximum amount of interest permitted by the Laws _______________________________.
(state, province, country)
3. Borrower reserves the right to prepay this Note in whole or in part, prior to maturity, without penalty.
4. Borrower promises to pay to the order of Payee at the place for payment and according to the terms for payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due by the final scheduled payment date.
5. If Borrower defaults in the payment of this Note or in the performance of any obligation, and the default continues after Payee gives Borrower notice of the default and the time within which it must be cured, as may be required by law or written agreement, then Payee may declare . . . (continued)