Document background
The Senior Promissory Note is a crucial financing instrument used in the Netherlands for documenting senior debt obligations. It serves as a formal acknowledgment of debt and a promise to repay, typically used in corporate financing, business loans, or structured financing transactions. The document's senior status ensures priority in payment over junior or subordinated debt, making it particularly important for lenders seeking stronger creditor protection. Under Dutch law, the note must comply with specific requirements of the Dutch Civil Code and financial regulations, particularly regarding form requirements, enforceability, and security interests. This instrument is commonly used when parties need a straightforward yet legally robust document to evidence a senior debt obligation, offering more flexibility than bonds but maintaining formal legal protection.
