Document background
The Bridge Loan Promissory Note is utilized when a borrower requires temporary financing to cover immediate capital needs while awaiting more permanent financing or the completion of a specific transaction. This document is particularly common in real estate transactions, corporate acquisitions, and business expansion scenarios in Canada. The note typically includes detailed terms regarding the principal amount, interest calculations, repayment schedule, and any security arrangements. It must comply with Canadian federal legislation such as the Interest Act and Bills of Exchange Act, as well as applicable provincial laws. The document serves as both a proof of debt and a legally binding agreement, often used by financial institutions, private lenders, and businesses when traditional longer-term financing options are not immediately available or practical.
