Unsecured Promissory Note Template for South Africa

This document template is designed for use in South African financial transactions where a formal acknowledgment of debt and promise of repayment is required without securing the obligation against specific assets. An Unsecured Promissory Note is commonly used in business transactions, personal loans, and commercial arrangements where the lender relies on the borrower's creditworthiness rather than collateral. The document complies with South African financial regulations, including the National Credit Act and Consumer Protection Act, and includes essential elements such as the principal amount, interest rate, payment terms, and default provisions. It's particularly useful for transactions between parties who have an established relationship or where the risk profile doesn't warrant secured lending arrangements.

1. Parties: Identification of the Promissor (maker) and Promissee (payee) with full legal names and details

2. Background: Brief context of the debt obligation and purpose of the promissory note

3. Definitions: Key terms used in the document including 'Principal Amount', 'Interest Rate', 'Maturity Date', etc.

4. Promise to Pay: The core promise to pay the specified amount, including the principal sum and payment date

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

6. Payment Terms: Details of payment schedule, method of payment, and payment allocation

7. Events of Default: Circumstances constituting default and consequences thereof

8. Remedies: Legal remedies available to the Promissee in case of default

9. Notices: How and where formal notices must be delivered between parties

10. Governing Law: Confirmation of South African law as governing law and jurisdiction

11. Signatures: Execution section with date and signatures of parties