Document background
A Credit Promissory Note is commonly used in Malaysian business and financial transactions when formal documentation of a credit obligation is required. This document, governed by Malaysian law including the Bills of Exchange Act 1949 and Financial Services Act 2013, provides a legally enforceable promise to repay a specific sum of money. It's particularly useful in situations involving business loans, commercial credit arrangements, or structured payment plans. The document must contain certain essential elements to be valid under Malaysian law, including an unconditional promise to pay, a specified sum, identified parties, and proper execution. Credit Promissory Notes can be either secured or unsecured, and may include additional provisions such as interest calculations, payment schedules, and default terms.
