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Bank Promissory Note Template for Singapore

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Key Requirements PROMPT example:

Bank Promissory Note

"I need a Bank Promissory Note for a secured corporate loan of SGD 2 million with quarterly interest payments, maturing on March 15, 2025, with my company's commercial property as collateral."

Document background
A Bank Promissory Note is a crucial financial instrument in Singapore's banking sector, commonly used when a bank extends credit to borrowers. The document creates a legally enforceable obligation under Singapore law, where the maker promises to repay a specific amount to the bank. The note typically includes payment terms, interest rates, and security arrangements if applicable. Bank Promissory Notes are particularly important for maintaining clear documentation of debt obligations and facilitating potential enforcement actions if required.
Suggested Sections

1. Promise to Pay: Unconditional promise to pay a specific sum, including the full amount and currency

2. Payment Details: Specification of payment terms including amount, currency, and specific payment date or schedule

3. Maker Information: Complete identification and details of the party making the promise to pay, including registration/identification numbers

4. Payee Information: Complete identification and details of the party to whom payment is to be made (typically the bank)

5. Place of Payment: Specific location or manner in which payment is to be made

Optional Sections

1. Interest Rate Provisions: Terms relating to interest payments, including rate, calculation method, and payment frequency

2. Security Provisions: Details of any collateral or security provided to support the promissory note

3. Default Provisions: Terms specifying events of default and consequences of default in payment

4. Acceleration Clause: Provisions allowing the entire amount to become due upon specified trigger events

Suggested Schedules

1. Payment Schedule: Detailed breakdown of installment payments including dates and amounts

2. Security Details Schedule: Comprehensive description of any security or collateral provided

3. Guarantor Information Schedule: Details of any guarantors including their full identification and extent of guarantee

4. Interest Calculation Schedule: Detailed methodology for interest calculation if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses

























Industries

Bills of Exchange Act (Chapter 23): Primary legislation governing promissory notes, bills of exchange, and negotiable instruments in Singapore. Section 84 specifically details requirements for valid promissory notes.

Banking Act (Chapter 19): Core legislation governing banking institutions and their operations in Singapore, including their ability to issue and handle promissory notes.

Contracts Act (Chapter 53): Fundamental legislation governing contract formation and validity, which underlies the promissory note as a contractual instrument.

Evidence Act (Chapter 97): Legislation governing the admissibility of evidence, particularly relevant for electronic records and documents in legal proceedings.

Monetary Authority of Singapore Act (Chapter 186): Legislation establishing MAS and its regulatory authority over financial institutions and instruments.

Money-changing and Remittance Businesses Act: Legislation governing money transactions and financial transfers, relevant for cross-border promissory notes.

Currency Act (Chapter 69): Legislation governing currency matters in Singapore, relevant for specification of currency in promissory notes.

Stamp Duties Act: Legislation governing stamp duty requirements for financial instruments including promissory notes.

Electronic Transactions Act: Legislation governing electronic transactions and digital signatures, relevant if the promissory note is to be executed electronically.

MAS Guidelines on Banking Practices: Regulatory guidelines issued by MAS governing banking practices and standards in Singapore.

MAS Notice 610: Specific regulatory notice regarding submission of statistics and returns to MAS, relevant for reporting requirements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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