Document background
The Senior Promissory Note is commonly used in Singapore for structured financing arrangements where a clear hierarchy of debt is required. It provides a formal, legally binding commitment to repay a debt with senior priority status. The document is particularly useful in complex financing structures where multiple layers of debt exist. Under Singapore law, these notes must comply with the Bills of Exchange Act and include specific elements such as an unconditional promise to pay, a fixed sum, and defined payment terms. The senior status provides additional protection to the holder by establishing priority over junior debt in case of default.
