Document background
A Registered Promissory Note is typically used in Canadian lending transactions where the lender requires both a negotiable debt instrument and security for the obligation. This document type is particularly useful in commercial lending, asset-based financing, and business-to-business transactions where the parties want to combine the simplicity of a promissory note with the protection of a registered security interest. The note must comply with the Bills of Exchange Act for validity as a negotiable instrument while also meeting provincial personal property security registration requirements. It includes essential terms such as payment obligations, interest calculations, security details, and enforcement provisions. The registered aspect provides additional protection to the creditor by creating a public record of the security interest and establishing priority rights in the collateral.
