A secured promissory note may also cater to the repayment of the loan in one lump sum. To properly complete the payment terms of the template, ensure that the relevant amounts, rates, and dates are recorded accurately in numbers.
If the Borrower fails to make any payment in terms of this agreement when such payment falls due, the Lender retains the right to declare all payments under the Agreement immediately due and payable.
The Borrower retains the right to make full repayment of the Capital Amount and any Interest owed at any time before such amounts fall due with no penalties being levied.
6.1 The Borrower’s promise to pay will be secured by a Security Agreement against the Borrower’s property described as (insert details of property) (“the Property”).
6.2 In the event of Acceleration being applied, the Property shall be transferred to the Lender, who shall thereafter retain full rights to ownership and possession of the Property.
6.3 Term 6.2 above notwithstanding, the Lender shall not be allowed to transfer, sell or otherwise alienate the Property without the Borrower’s written consent until such time that the Borrower is provided with a maximum of seven (7) days to cure any defaults.
6.4 Should the Borrower not cure a repayment obligation in time, the Lender reserves the right to sell, transfer, or alienate the Property as full repayment for any amounts still owed.
6.5 Should the value of the Property be insufficient to satisfy the full amount of the Capital Amount and any Interest still owed to the Lender, the Borrower will remain liable for the balance, which shall continue to accrue interest on a monthly basis at the maximum rate permitted by any applicable law.