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Shareholder Promissory Note
"I need a Shareholder Promissory Note for a £500,000 investment in our tech startup, with quarterly interest payments at 8% per annum and full repayment by March 2025, secured against the shareholder's existing shares."
1. Parties: Identification of maker (promisor) and payee (promisee) of the note
2. Background: Context of the promissory note and relationship between parties
3. Definitions: Key terms used throughout the document
4. Promise to Pay: Unconditional promise to pay a specific sum
5. Payment Terms: Amount, interest rate, payment schedule, and method of payment
6. Default Provisions: Consequences of failure to pay
7. Governing Law: Specification of applicable law and jurisdiction
1. Security: Details of any collateral or security arrangements - used when the note is secured against assets
2. Prepayment Terms: Conditions for early repayment - used when early repayment is permitted
3. Assignment: Rights to transfer the note - used when transfer rights need to be specified
4. Subordination: Priority ranking of the note - used when multiple creditors are involved
1. Payment Schedule: Detailed breakdown of payment dates and amounts
2. Security Details: Description of any assets used as security
3. Share Certificate: Copy of relevant share certificate if shares are used as security
4. Corporate Authorizations: Relevant board resolutions or shareholder approvals
Authors
Applicable Law
Business Day
Default Interest Rate
Event of Default
Interest Payment Date
Interest Period
Interest Rate
Maturity Date
Note
Outstanding Amount
Payment Date
Principal Amount
Relevant Shares
Security
Share Certificate
Shareholder Agreement
Subscription Agreement
Transaction Documents
Transfer
Collateral
Guarantor
Permitted Assignment
Prepayment Notice
Security Interest
Subordination Agreement
Underlying Documents
Payment Terms
Interest
Default
Acceleration
Representations and Warranties
Security
Notice Requirements
Assignment
Governing Law
Jurisdiction
Prepayment
Subordination
Set-off
Guarantees
Share Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Confidentiality
Costs and Expenses
Tax Gross-Up
Amendment and Waiver
Severability
Force Majeure
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