Promissory Note and Security Agreement: Definition, Example
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Quick Facts — Promissory Note And Security Agreement Lawyers
- Avg cost to draft a Promissory Note Agreement: $710.00
- Avg cost to review a Promissory Note Agreement: $390.00
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What is a Promissory Note And Security Agreement?
A promissory note and security agreement are legal documents often used to secure loans. For example, if a borrower defaults on their loan, the lender can claim their secured asset. This is an example of how a promissory note and security agreement work.
The use of something as collateral for debt repayment is common practice in lending. For example, a bank may hold a borrower’s car as collateral to ensure repayment of the loan. In addition, a promissory note and security agreement outline how long and under what terms a borrower must repay the loan and what will happen if they default on those payments.
Promissory Note Templates
Promissory Note And Security Agreement Sample
PROMISSORY NOTE AND SECURITY AGREEMENT
FOR VALUE RECEIVED, the undersigned, Kunekt Corporation (the "Debtor") promises to pay to the order of Mark Bruk or his assigns (the "Secured Party"), at such place as Secured Party may designate in writing, in lawful money of the United States of America and in immediately available funds, up to the full principal amount of $450,000 with interest at the rate of the Fed (U.S.) Prime Rate as set forth by the Wall Street Journal on its Web site at http://www.wsjprimerate.us/.
Principal and interest due hereunder shall be payable on demand. The unpaid principal balance of this note at any time shall be the total amount loaned hereunder by the Secured Party less the amount of prepayments of principal made hereon by or for the account of Debtor. Debtor shall have the right to prepay this note, in whole or in part, at any time without penalty.
The entire unpaid principal balance of this note shall immediately become due and payable, at the option of Secured Party with thirty days written notice to Debtor.
In the event Debtor fails to pay the unpaid principal balance of this note and interest due hereunder within thirty days after receipt of written notice by Secured Party ("Event of Default"), Secured Party may proceed to protect and enforce its rights by suit in equity and/or by action at law or by other appropriate proceedings. No delay on the part of Secured Party in the exercise of any power or right under this note, or under any other instrument executed pursuant thereto shall operate as a waiver thereof, nor shall a single or partial exercise of any other power or right preclude further exercise thereof. Notwithstanding anything to the contrary contained herein, if an Event of Default shall occur, all payments thereafter made hereunder shall be applied, at the option of Secured Party, first to costs of collection, and then to principal.
It is hereby specially agreed that if this note is placed into the hands of an attorney for collection, or if proved, established, or collected in any court, Debtor agrees to pay to Secured Party an amount equal to all expenses incurred in enforcing or collecting this note, including court costs and reasonable attorneys’ fees.
Except for the notice expressly provided herein, Debtor hereby waive presentment for payment, notice of nonpayment, demand, notice of demand, protest, notice of protest, diligence in collection, grace and without further notice hereby consents to renewals, extensions, or partial payments either before or after maturity.
All agreements between Debtor and Secured Party, whether now existing or hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever shall the amount paid, or agreed to be paid, to Secured Party hereof for the use, forbearance, or detention of the money advanced to Debtor, or for the performance or payment on any covenant or obligation contained herein, exceed the maximum amount permissible under applicable federal or state law.
This note shall be governed by and construed in accordance with the laws of the State of Nevada and the United States of America. In the event any one or more of the provisions contained herein shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected thereby.
Grant of Security Interest
As a condition for Secured Party to agree to lend Debtor the funds contemplated herein, Debtor grant to Secured Party, a security interest in its property, tangible and intangible, including but not limited to: all accounts, now existing or subsequently arising; all contract rights of Debtor, now existing or subsequently arising; all accounts receivable, now existing or subsequently arising; all chattel paper, documents, and instruments related to accounts; all intellectual property, inventory, furniture, fixtures, equipment, and supplies now owned or subsequently acquired; and the proceeds, products, and accessions of and to any and all of the foregoing (the "Collateral").
This security interest is granted to secure the debt evidenced by this note and agreement and all costs and expenses incurred by Secured Party in the collection of the debt.
Secured Party, in its discretion, may file one or more financing statements under the Nevada Uniform Commercial Code, naming Debtor as a debtor and Secured Party as secured party and indicating the Collateral specified in this Promissory Note and Security Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate originals by their duly authorized officers or representatives.
BRUK /s/ MARK BRUK Signed: Name: Mark Bruk Date: September 24, 2009 | KUNEKT /s/ MARK BRUK Signed: Name: Mark Bruk Title: President Date: September 24, 2009 |
Reference:
Security Exchange Commission - Edgar Database, EX-10 2 ex10-1.htm PROMISSORY NOTE AND SECURITY AGREEMENT, Viewed January 27, 2022, View Source on SEC.
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Steven W.
Attorney Steven Wax is ardent about helping his clients. Whether creating personalized estate plans, drafting and negotiating contracts or other legal matters. Steven’s goal is to assist and counsel his clients to protect them and their loved ones. Steven grew up on Long Island, New York. He attended the University of Massachusetts in Amherst earning a BS in Sport Management. He earned his paralegal certificate at Duke University and earned his Juris Doctorate from North Carolina Central University School of Law in Durham, NC. Steven has an extensive legal career in the life science sector, working for some of the world’s largest Contract Research Organizations since 2013. Steven has negotiated a broad range of contracts for both businesses and individuals. Steven participated in the NCCU Elder Law Project, where he prepared wills, durable powers of attorney, living wills, and health care powers of attorneys for low/fixed income clients in Durham and surrounding counties. Steven finds meaningful ways to share his skills and passion with his community. Steven volunteers his time to Wills for Heroes, which provides no-cost estate planning documents to first responders and their families, through the NC Bar Foundation.
"I worked with Steven W to review my prenuptial agreement. He helped me understand the terms of what I was agreeing to and had very fair pricing. I would recommend him for this purpose."
Matt B.
Matt practices law in the areas of commercial finance, contract law, business & corporate law, and residential and commercial real estate (with a particular emphasis on retail shopping centers and office buildings). He has extensive experience in negotiating and structuring complex commercial loan, asset acquisition, asset disposition, leasing and real estate transactions. Matt additionally works on various general matters for clients such as forming LLCs and corporations, preparing various LLC and corporation documents and drafting and reviewing various types of contracts and agreements for clients and providing advice regarding same. Matt provides clients with extensive and timely communication on their matters and ensures that his clients are well represented and highly satisfied with their legal representation and the work product provided. Matt offers all potential clients a free initial consultation to discuss their legal matters prior to engaging his firm to represent them. Prior to opening his law firm Matt worked for many years in the New York City office of a large international law firm where he counseled large multi-national businesses, financial institutions, investment groups and individuals on highly sophisticated business, financial and real estate transactions. Matt provides his clients with diligent legal representation on their matters with a very personal approach.
"Matt was very responsive, professional, and easy to work with. He turned my document around quickly, made thoughtful revisions, and was helpful in answering my follow up questions. I appreciated his practical approach and would definitely use him again."
Michelle T.
I am an experienced, well-rounded attorney with a background specializing in trusts and estates, contracts and business law. I have extensive experience working with simple contracts all the way up to multi-million dollar deals.
"Michelle drafted an excellent and unique Post Nuptial agreement which outlines a very specific "process" that will be used to divide assets in the event of divorce. Since assets can change value daily, traditional "splitting an asset list" methods are often outdated within a week of signing. Michelle rose to the challenge at a very reasonable price. Other, "meter man" attorneys would have charged at least 5x more. I highly recommend Michelle!"
LeMont J.
LeMont leads a corporate and transactional practice with a focus on delivering practical, business-oriented legal solutions. His practice spans corporate law, commercial transactions, and real estate matters, advising clients through entity formation, governance, contract negotiation, acquisitions, and complex deal structuring. In the corporate and transactional space, LeMont counsels closely held businesses, startups, and growth-stage companies on formation strategy, operating agreements, shareholder arrangements, and day-to-day commercial contracting. He is known for structuring deals in a way that balances legal protection with operational flexibility, ensuring that agreements are both enforceable and commercially workable. His real estate practice includes representing clients in residential and commercial transactions, including purchases, sales, leasing arrangements, and hybrid structures such as rent-to-own and option-to-purchase agreements. He regularly works with clients to navigate deal risk, clarify ownership timelines, and document transactions to minimize future disputes.
"Hired LeMont for a compliance review — a claim I was about to print and an agreement I was about to sign. He asked good questions before starting instead of guessing at my facts, and one of them caught a real gap in my own draft. Where the law was unsettled he told me what he'd do rather than stopping at "it depends," which is the entire reason I hired a lawyer instead of trying to read the statutes myself. He also surfaced something my own research had missed entirely. He flagged an issue he could easily have billed me to analyze, and told me to wait until it was actually a problem. Delivered on time, at the flat fee quoted, no surprises. I'll be hiring him again."
Joshua D.
I am an experienced small business attorney. I work diligently to ensure that small business owners achieve their objectives while maintaining compliance, satisfying legal duties, and engaging in smart contracting opportunities. I provide everything from organization, to lease/commercial real estate purchase agreement review and negotiation, and even IP filings. I can help to navigate commercial and government contracts, as well as other SaaS-type agreements.
"Josh is very knowledgable and was extremely helpful. He responds promptly and is easy to talk to. I have had other encounters with lawyers in the past and this was by far the most refreshing encounter in terms of experience and outcome."
Paul P.
With more than twenty years of experience, Attorney Paul Petrillo has written contracts, business agreements, wills, trusts and the like. Licensed in both New Hampshire and Massachusetts, Attorney Petrillo is regular user of remote and virtual communications and document exchanges, such as DocuSign, Adobe e-sign, as well as virtual meetings using Zoom and Webex, to make drafting contracts and communicating with clients quick and easy.
July 27, 2023
Stephen S.
Stephen is a graduate of Nova Southeastern University - Shepard Broad College of Law, Stephen is licensed to practice in New Jersey and New York. He focuses on Morris, Passaic, and Bergen County, New Jersey, but services all of New Jersey. Before graduating, Stephen did an externship in Denver, Colorado with a focus on land use and development. Upon returning to New Jersey, he focused on Condominium and Home Owner Association. He also worked with Residential Real Estate Transactions and Estate Planning clients.
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Secure Promissory Note for loans provided to Comet Skateboards, Inc
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"I had an excellent experience working with Allen to review my promissory note. Allen was professional, thorough, and took the time to clearly explain the terms, risks, and implications in a way that was easy to understand. I appreciated his attention to detail and responsiveness throughout the process. His guidance gave me confidence and peace of mind before moving forward. I would highly recommend his service to anyone needing careful and knowledgeable legal review."
Secured Convertible Promissory Note Drafting
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Set up loan contract / promissory note on a personal loan with equity in property as collateral
Location: New Jersey
Turnaround: A week
Service: Drafting
Doc Type: Promissory Note Agreement
Number of Bids: 3
Bid Range: $700 - $1,800
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