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The Simple Note Payable Agreement is a fundamental financial document used across various business contexts in Canada when one party needs to formally document a promise to repay a debt to another party. This agreement is commonly used for business loans, personal loans, or vendor financing arrangements. The document must comply with Canadian federal legislation, particularly the Bills of Exchange Act and Interest Act, as well as relevant provincial laws governing contracts and financial transactions. A Simple Note Payable Agreement typically includes essential elements such as the principal amount, interest rate, payment schedule, default provisions, and remedies. It can be either secured (backed by collateral) or unsecured, and may include additional provisions such as prepayment terms or guarantor obligations. This type of agreement is particularly useful for maintaining clear records of debt obligations and ensuring enforceability of repayment terms under Canadian law.

1. Parties: Identifies the Lender and Borrower with their full legal names and addresses

2. Background: Brief context of the loan arrangement and acknowledgment of the debt

3. Definitions: Defines key terms used throughout the agreement including 'Principal Amount', 'Interest Rate', 'Maturity Date', etc.

4. Promise to Pay: The core obligation stating the principal amount, interest rate, and promise to repay

5. Payment Terms: Details of payment schedule, including frequency, amount, and method of payments

6. Interest Calculation: Specification of how interest is calculated and compounded

7. Representations and Warranties: Basic statements about the borrower's capacity and authority to enter into the agreement

8. Events of Default: Defines what constitutes default and consequences thereof

9. Notice: How and where formal notices between parties should be delivered

10. Governing Law: Specifies that Canadian law governs the agreement

11. Execution: Signature block and date of execution