Document background
A Non Recourse Promissory Note is commonly used in Singapore when parties wish to structure a loan where the lender's recovery is strictly limited to specific collateral. This document is particularly relevant for asset-based financing where the borrower seeks to limit personal liability. Under Singapore law, it must comply with the Bills of Exchange Act and Civil Law Act, requiring clear specification of the loan amount, payment terms, interest rates, and most importantly, the explicit limitation of the lender's recourse to the specified collateral. The document provides security for the lender while offering protection to the borrower against personal liability beyond the collateral value.
