Document background
The Secured Promissory Note is a vital financial instrument used in Irish business and lending transactions where a formal documented promise to pay needs to be backed by security over specific assets. This document type is commonly utilized in various scenarios, from business loans to asset financing, where the lender requires both a clear payment obligation and security protection. The Secured Promissory Note combines the straightforward nature of a promissory note with robust security provisions, making it particularly useful for transactions where formal loan documentation might be excessive but unsecured lending would be insufficient. The document must comply with Irish law requirements for both promissory notes and security creation, including the Bills of Exchange Act 1882 and relevant security and property legislation. It typically includes detailed provisions about the secured assets, payment terms, enforcement mechanisms, and the parties' rights and obligations.
