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Novation Of Promissory Note
"I need a Novation of Promissory Note to transfer a €500,000 promissory note from our parent company to our newly formed subsidiary as part of corporate restructuring, with the original payment schedule maintained and maturity date of March 15, 2025."
1. Parties: Identifies all three parties: the Original Promisor (maker of the original note), Original Promisee (original holder), and New Party
2. Background: Details of the original promissory note, reason for novation, and context of the transaction
3. Definitions: Defines key terms including 'Original Promissory Note', 'Effective Date', 'Outstanding Amount' and other relevant terms
4. Novation: Core section detailing the discharge of original obligations and creation of new obligations
5. Payment Terms: Specifies the amount, interest rate, payment schedule, and method of payment under the novated arrangement
6. Representations and Warranties: Statements from all parties confirming their capacity, authority, and validity of the original note
7. Conditions Precedent: Any conditions that must be satisfied before the novation takes effect
8. Effect of Novation: Clearly states the legal effect of the novation on existing rights and obligations
9. Governing Law and Jurisdiction: Specifies Irish law as governing law and jurisdiction for disputes
1. Security Arrangements: Include if the original promissory note had any security arrangements that need to be addressed or new security to be established
2. Tax Provisions: Include if there are specific tax implications that need to be addressed between the parties
3. Notice Requirements: Include if specific notice requirements for payments or other communications need to be detailed
4. Assignment Restrictions: Include if there are restrictions on further assignment or transfer of the novated note
5. Default Provisions: Include if specific events of default and remedies need to be detailed beyond standard provisions
6. Costs and Expenses: Include if there are specific arrangements for bearing the costs of the novation
1. Schedule 1 - Original Promissory Note: Copy or details of the original promissory note being novated
2. Schedule 2 - Payment Schedule: Detailed payment schedule including dates, amounts, and calculation of interest
3. Schedule 3 - Form of Notice: Template for any required notices under the agreement
4. Appendix A - Existing Security Details: If applicable, details of any existing security arrangements
5. Appendix B - Conditions Precedent Documents: List of documents required to satisfy conditions precedent
Authors
Banking and Financial Services
Corporate Finance
Real Estate
Investment Management
Private Equity
Commercial Lending
Asset Management
Insurance
Manufacturing
Construction
Legal
Finance
Treasury
Corporate Finance
Risk Management
Compliance
Credit Management
Commercial Operations
Investment
Company Secretariat
Chief Financial Officer
Finance Director
Treasury Manager
Legal Counsel
Corporate Lawyer
Financial Controller
Credit Manager
Risk Manager
Company Secretary
Commercial Director
Investment Manager
Debt Recovery Officer
Corporate Finance Manager
Compliance Officer
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