Secured Demand Promissory Note Template for Netherlands

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Key Requirements PROMPT example:

Secured Demand Promissory Note

"I need a Secured Demand Promissory Note under Dutch law for a €500,000 business loan to my manufacturing company, secured by industrial equipment, with Metropolitan Bank NV as the lender and a 5% interest rate."

Document background
The Secured Demand Promissory Note is commonly used in the Netherlands for commercial lending and financial transactions where immediate security is required alongside a debt obligation. This document type combines the flexibility of a demand note with the protection of security interests, making it particularly useful for business loans, asset-backed financing, and commercial credit arrangements. The security component distinguishes it from a standard promissory note by providing the lender with specific rights over designated collateral. Under Dutch law, these instruments must comply with civil code requirements for both debt instruments and security arrangements, including proper registration of security interests where required. The document typically includes detailed information about the debt obligation, security arrangements, enforcement mechanisms, and demand requirements, structured to ensure enforceability under Dutch jurisdiction.
Suggested Sections

1. Header Information: Date, parties' names, and amount of the note in both numbers and words

2. Promise to Pay: Unconditional promise to pay the principal amount, including the payee's details and payment terms

3. Interest Rate: Specification of the applicable interest rate, calculation method, and payment frequency

4. Security Provisions: Description of the collateral or security provided, including type, value, and location of assets

5. Default Provisions: Definition of events of default and consequences, including acceleration rights

6. Demand Nature: Clear statement that the note is payable on demand and conditions for making such demand

7. Enforcement Rights: Lender's rights and remedies upon default, including security enforcement

8. Representations: Basic representations regarding authority to execute and validity of security

9. Governing Law: Specification of Dutch law as governing law and jurisdiction

10. Signature Block: Execution section with maker's signature, witness requirements if any

Optional Sections

1. Prepayment Terms: Include when early repayment options are to be specifically allowed or restricted

2. Guarantor Provisions: Include when there is a third-party guarantor for the note

3. Assignment Rights: Include when transfer or assignment of the note needs to be specifically addressed

4. Tax Provisions: Include when specific tax implications need to be addressed or tax gross-up is required

5. Currency Provisions: Include for cross-border transactions or when multiple currencies are involved

6. Additional Security Covenants: Include when ongoing obligations regarding security maintenance are required

7. Notice Provisions: Include when specific notice requirements for demands or communications are needed

Suggested Schedules

1. Schedule A - Security Details: Detailed description of security assets, including registration numbers, locations, and values

2. Schedule B - Payment Schedule: If applicable, detailed payment terms including dates and amounts

3. Schedule C - Security Documents: Copies or forms of additional security documentation required

4. Appendix 1 - Asset Valuations: Current valuations of security assets if required

5. Appendix 2 - Required Registrations: List of security registrations and filings required

6. Appendix 3 - Form of Demand: Standard form for making demand under the note

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate

Commercial Lending

Manufacturing

Trading and Commerce

Professional Services

Technology

Agriculture

Construction

Energy

Healthcare

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Commercial

Credit

Compliance

Corporate Banking

Business Development

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Credit Manager

Risk Manager

Commercial Director

Business Development Manager

Financial Controller

Compliance Officer

Security Trustee

Loan Officer

Portfolio Manager

Corporate Banking Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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