Recourse Promissory Note: Definition, Terms, Example
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Quick Facts — Recourse Promissory Note Lawyers
- Avg cost to draft a Promissory Note Agreement: $720.00
- Avg cost to review a Promissory Note Agreement: $380.00
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What is a Recourse Promissory Note?
A recourse promissory note is a contract between a lender and borrower where the lender can seize collateral and other assets to pay back defaulted loans. This type of promissory note is especially popular in situations where the lender takes on an increased amount of risk, such as by lending to a company who has little financial history or a limited credit history. By securing the loan with collateral and other assets, lenders can mitigate their risk by making it more likely that they will be paid back for their loan one way or another.
Common Sections in Recourse Promissory Notes
Below is a list of common sections included in Recourse Promissory Notes. These sections are linked to the below sample agreement for you to explore.
Promissory Note Templates
Recourse Promissory Note Sample
Exhibit 10.7
FULL-RECOURSE PROMISSORY NOTE
$60,724.40
Bellevue, Washington
Dated: March 23, 2004
For value received, the undersigned promises to pay HouseValues, Inc., a Washington corporation (the “Company”), at its principal office the principal sum of $60,724.40, together with interest from the date hereof on the unpaid principal balance, upon the terms and conditions specified below.
1. Term. Unless earlier payment is required by the terms herein, the principal balance of this Note, together with interest accrued and unpaid to date, shall be due and payable on the earlier of (a) the fourth anniversary of the date of this Note, or (b) a Liquidity Event. A “Liquidity Event” shall mean the consummation of an acquisition of the Company by merger, consolidation or otherwise, the consummation of a sale of all or substantially all of the Company’s assets, or the Company’s initial public offering of securities registered under the Securities Act of 1933, as amended.
2. Rate of Interest. Interest shall accrue under this Note on the unpaid principal balance at a rate equal to the higher of (a) 8% per annum and (b) the rate necessary to avoid imputation of interest for federal income tax purposes, such interest compounded annually.
3. Prepayment. Principal and interest are payable in lawful money of the United States of America. Amounts due under this Note may be prepaid at any time without interest or penalty.
4. Events of Payment Acceleration. The entire unpaid principal sum and unpaid interest under this Note shall become immediately due and payable if
(a) the undersigned fails to pay when due the principal balance and accrued interest on this Note and the continuation of such default for more than 30 days;
(b) the undersigned becomes insolvent, begins an act of bankruptcy, executes a general assignment for the benefit of creditors, or files a petition in bankruptcy or a petition for relief (or such petition is filed against the undersigned)
1
under the provisions of the federal bankruptcy act or another state or federal law for the relief of debtors and such petition continues without dismissal for a period of 90 days or more; or
(c) the undersigned breaches any terms of this Note or the Separation Agreement and Release, Pledge and Security Agreement, or Confidential Information, Inventions, Nonsolicitation and Noncompetition Amendment Agreement executed in connection with this Note.
5. Collection. Should suit be commenced to collect any sums due under this Note, such sum as a court may deem reasonable shall be added hereto as attorneys’ fees. The makers and endorsers have severally waived presentment for payment, protest, notice of protest and notice of nonpayment of this Note.
6. Security. This Note, which is full recourse, is secured by a pledge of certain shares of common stock of the Company and is subject to the terms of the Pledge and Security Agreement between the undersigned and the Company of even date herewith. The undersigned, however, shall remain personally liable for payment of this Note, and assets of the undersigned, in addition to the collateral under the Pledge and Security Agreement, may be applied to the satisfaction of the undersigned’s obligations hereunder.
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.
| /s/ Robert Schulze |
| Signature |
| Robert Schulze |
2
Reference:
Security Exchange Commission - Edgar Database, EX-10.7 14 dex107.htm FULL-RECOURSE PROMISSORY NOTE FROM ROBERT SCHULZE, Viewed September 27, 2022, View Source on SEC.
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Agnes M.
Agnes Mombrun Geter is the Founder and Managing Attorney of Mombrun Law, PLLC. She is an experienced attorney and is a member of the Florida Bar, New Jersey Bar, and the Pennsylvania Bar. The firm's practice focuses on Estate Planning, Business Law, and Debt Settlement including IRS Debt Relief. The firm's goal is to simplify the law and provide clients with the confidence and information necessary to make their decisions. The firm also provides project-based legal services to other attorneys and law firms, along with assisting as personal counsel and local counsel on legal matters.
"Ma. Agnes was very kind and thorough. I highly recommend her and would hire her again if needed."
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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."
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.
"Steven was very helpful and informative throughout the process of reviewing my divorce decree, and he completed the project promptly. Thank you, Steven!"
May 2, 2024
Akash K.
Practicing in New York, New Jersey, New Delhi & Gurgaon, Akash’s cross-border practice focuses on immigration, intellectual property law, entertainment law and transactional law. With a Juris Doctor from Brooklyn Law School, an LLM from NLSIU, and a master’s in management from Lancaster University, Akash is highly qualified to deliver comprehensive and effective legal solutions to all his clients. Akash's immigration law practice focuses on work-based and family-based immigrant and non-immigrant visas. His expertise spans a variety of services in this sector – including petitions, applications, pre-petition compliances, changes of status, employment authorization, derivative applications, maintenance of status, and much more. He also provides consular law services within India. Akash has a strong academic and practical background in Intellectual Property Rights and Media Law. His practice includes IPR registration, IPR management, IPR auditing, pre- and post-publication review, piracy and copyright matters, media law compliances, and more. Akash's international commercial and transactional law practice specializes in cross-border transactions, business structuring, investments, joint ventures, mergers and acquisitions. His alternative dispute resolution practice, both as a commercial mediator, has resulted in successfully resolving disputes over family affairs, business concerns, and commercial disputes. He is a registered a certified commercial mediator with the Indian Institute of Arbitration and Mediation.
Ryon D.
As an esteemed attorney based in Washington, D.C., I bring a wealth of experience and expertise to the legal arena, specializing in a broad spectrum of legal areas including contract drafting, legal research, motions drafting, family law, and criminal law. I earned my Juris Doctor degree from the University of the District of Columbia, where I honed my skills and knowledge in the intricacies of the law. With a solid foundation in both theoretical understanding and practical application, I am equipped to handle the diverse needs of my clients effectively. Throughout my career, I have demonstrated a steadfast commitment to delivering exceptional legal services tailored to each client's unique circumstances. Whether it's crafting airtight contracts, conducting thorough legal research, or advocating vigorously in court, I am dedicated to achieving favorable outcomes for those I represent. My passion for justice, coupled with my dedication to upholding the principles of fairness and integrity, drives me to provide top-notch legal representation for individuals and businesses alike. With a keen attention to detail and a strategic approach to problem-solving, I am well-equipped to navigate the complexities of the legal system and advocate tirelessly on behalf of my clients. I take pride in my ability to build strong, trusting relationships with my clients, guiding them through every step of the legal process with compassion and professionalism. Whether you're facing a challenging legal issue or seeking proactive legal guidance, I am here to provide the skilled representation and personalized attention you deserve. Contact me today to schedule a consultation and take the first step toward resolving your legal matters effectively and efficiently.
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Thomas C.
I’ve been an attorney for over 20 years practicing mainly in the insurance industry. I’ve worked for law firms, insurance carriers, and insurance brokerages. I currently have my own firm where I help companies manage risk, insurance coverage issues and other business related matters.
Lisa C.
Lisa Copland Gordon is a seasoned litigator who has practiced law in Illinois for over 25 years. She is a graduate of Northwestern Pritzker School of Law, with a concentration in Civil Litigation and Dispute Resolution. Lisa earned her undergraduate degree from Princeton University. Lisa provides counsel to clients in real estate matters including purchasing, selling, HOA and lease issues. She also represents clients and small businesses in all Cook County courthouse locations.
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Location: Washington
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Service: Drafting
Doc Type: Promissory Note Agreement
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Bid Range: $499 - $800
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