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Promissory Note And Security Agreement Template for Singapore

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Key Requirements PROMPT example:

Promissory Note And Security Agreement

"I need a Promissory Note And Security Agreement under Singapore law for a SGD 2 million business loan to be secured against company equipment, with monthly repayments over 36 months starting from March 2025."

Document background
The Promissory Note And Security Agreement is a vital instrument in Singapore's secured lending landscape, commonly used when a lender requires both a formal acknowledgment of debt and collateral security. This document type complies with Singapore's robust financial services regulatory framework and provides lenders with enhanced protection through both a direct promise to pay and a security interest in specific assets. It is particularly useful in business loans, asset financing, and structured lending arrangements where the lender seeks multiple layers of protection for their advanced funds.
Suggested Sections

1. Parties: Identification of lender and borrower

2. Background: Context of the loan and security arrangement

3. Definitions: Key terms used in the agreement

4. Promise to Pay: Core obligation to repay the principal amount

5. Interest Rate: Specification of interest rate and calculation method

6. Security Interest: Description of collateral and security arrangement

7. Payment Terms: Schedule and method of payments

8. Events of Default: Circumstances constituting default

9. Enforcement Rights: Lender's rights upon default

Optional Sections

1. Prepayment Provisions: Terms for early repayment when permitted

2. Guarantor Provisions: Terms relating to guarantors when a guarantor is involved

3. Insurance Requirements: Requirements for insuring collateral when applicable

4. Assignment Rights: Terms for transferring rights under the note when assignment is to be included

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment dates and amounts

2. Collateral Schedule: Detailed description of security assets

3. Interest Calculation Schedule: Detailed method for calculating interest

4. Form of Notice: Template for default notices or other communications

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Securities and Futures Act (Cap. 289): Primary legislation governing the regulation of securities and financial instruments in Singapore. Essential for structuring security arrangements in the agreement.

Civil Law Act (Cap. 43): Contains fundamental provisions regarding contractual obligations, particularly relevant for interest rates and enforceability of the promissory note.

Bills of Exchange Act (Cap. 23): Defines requirements for valid promissory notes as negotiable instruments and their legal framework in Singapore.

Property Act (Cap. 242): Governs creation and enforcement of security interests in property, crucial for the security agreement portion.

Moneylenders Act (Cap. 188): Regulates interest rates and lending practices if the lender falls under the definition of a moneylender.

Banking Act (Cap. 19): Applicable if the transaction involves regulated financial institutions, setting out compliance requirements.

Contracts (Rights of Third Parties) Act: Governs the assignability of rights and third-party rights in contractual arrangements.

Stamp Duties Act: Determines stamp duty requirements and obligations for the documentation of the agreement.

Personal Data Protection Act: Ensures compliance with data protection requirements when handling personal information in the agreement.

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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