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The Discount Promissory Note is a specialized financial instrument used when parties wish to engage in debt-based transactions with a built-in discount mechanism. This document type is particularly useful in trade finance, commercial lending, and business transactions where immediate liquidity is needed at a discount to the full amount. Under Irish law, these notes must comply with the Bills of Exchange Act 1882 and related financial regulations. The Discount Promissory Note includes essential elements such as the principal amount, discount rate, payment terms, and maturity date, making it a valuable tool for businesses seeking alternative financing options. It's commonly used in situations where the payee is willing to accept a reduced immediate payment in exchange for a larger future sum, effectively creating a return through the discount mechanism.

1. Parties: Identifies the maker (promissor) and payee (promissee) with full legal names and addresses

2. Unconditional Promise: Clear statement of unconditional promise to pay a specific sum of money

3. Principal Amount: States the face value of the promissory note in numbers and words

4. Discount Terms: Specifies the discount rate, calculation method, and discounted amount

5. Payment Terms: Details of when and how payment will be made, including maturity date and payment method

6. Place of Payment: Specifies where the payment is to be made or where the note is payable

7. Negotiability: States whether the note is negotiable and terms of transfer if applicable

8. Governing Law: Confirms Irish law as governing law and jurisdiction

9. Execution: Signature blocks and dating requirements