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.