Recourse Promissory Note: Definition, Terms, Example
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Quick Facts — Recourse Promissory Note 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 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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Darryl S.
Darryl S.
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Experienced attorney and tax analyst with a history of working in the government and private industry. Skilled in Public Speaking, Contract Law, Corporate Governance, and Contract Negotiation. Strong professional graduate from Penn State Law.
"Really appreciate the promptness and attention to detail. Thanks!"
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Legal services cost too much, and are often of low quality. I have devoted my law practice to providing the best work at the most affordable price—in everything from defending small businesses against patent trolls to advising multinational corporations on regulatory compliance to steering couples through a divorce.
"Briana was responsive and quick to put the draft together. It has been a pleasure working with her!"
Randy M.
Hi, I'm Randy, and I've been practicing law for over 30 years with a genuine passion for contracts and legal drafting. I spent nearly 15 years running my own solo practice in Richmond, Virginia, where I built a thriving firm helping everyone from small business owners to entertainment professionals navigate their legal needs. Those years taught me that great contracts aren't just about covering all the bases legally - they're about understanding what my clients actually need and translating that into clear, enforceable agreements. My sweet spot is contract drafting across a wide range of areas. I've written hundreds of LLC operating agreements (both single and multi-member), prenuptial and postnuptial agreements, residential and commercial leases, independent contractor agreements, service contracts, NDAs, consulting agreements, and corporate formation documents. I also have extensive experience in estate planning documents - wills, trusts, powers of attorney, and living wills - plus employment agreements and entertainment law contracts. These days I'm based in New York City, but I work with clients nationwide on contract matters. What I love most about this work is taking complex business relationships and turning them into documents that actually make sense and protect everyone involved. Whether you're a startup founder needing your first operating agreement or an established business updating your contractor templates, I focus on creating contracts that work in the real world, not just on paper. After three decades of practice, I still get excited about a well-crafted contract. Let's talk about how I can help with yours.
"Randy was very thorough and asked plenty of follow-up questions to make sure he created the contract I needed exactly as I needed it. He worked quickly and gave updates along the way as he drafted the document for me. I would definitely work with him again."
Michael K.
A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.
"Pretty much finished up with the project, aside from some finishing touches. I have to say, Michael did a great job. He worked patiently with me through any irregularities or confusion. What I appreciated most was that his vision was to get me the best results, ensuring a secure structure and a solid investment. I really appreciate his work and help."
Michael C.
A seasoned senior executive with experience leading the legal and compliance functions of healthcare entities through high-growth periods. I have experience managing voluminous litigation caseloads, while also handling all pre-litigation investigations for employment, healthcare regulatory, and compliance matters. Similarly, I have led multiple M&A teams through purchase and sale processes, including diligence and contract negotiations. Finally, I have extensive contract review experience in all matters, including debt and equity financing, healthcare payor contracting, vendor and employment agreements, as well as service and procurement agreements.
"Michael was super knowledgeable and efficient. He was very attentive, helpful and made himself available pursuant to our needs as well. He completed the initial drafts well before the scheduled timeframe. We are very pleased with his work ethic and delivery of this project. He was also very easy to work with. We recommend his legal services without hesitation. Would definitely hire him again!"
Mark D.
Partnering with business clients to keep their greatest asset - their employees - from becoming their biggest liability. Mark accomplishes this by working with in-house counsel and human resource professionals of several Fortune 50 companies, as well as many smaller public and privately held profit and not for profit organizations, to provide advice and counsel on the day to day employment and workforce practice issues encountered by those organizations. For over fifteen years Mark has been Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization. He is licensed and practices in both Texas and Colorado and has focused his practice for the last 20 plus years on defending companies in employment and labor related matters. During this time Mark has had extensive experience in handling and responding to a wide range of local, state and federal employment issues that impact the management and operations of businesses in a wide range of industries. Mark's experience includes appearances before state and federal agencies and regulatory boards, litigation in both state and federal courts, defense of class actions and appearances before courts of appeal. While Mark regularly handles matters in litigation, he has a high regard for handling every issue with the best interest of the client’s business. Mark is a published author and regular speaks on labor, employment and workplace practice topics. Whether it be an investigation by the Occupational Safety and Health Administration (OSHA), the Wage & Hour division of the U.S. Department of Labor, or other state agency; an Equal Employment Opportunity Commission (EEOC) or state agency charge claiming a violation of local, state or federal employment or labor laws; or the need for direction on a hiring, termination or business operational issue involving employees, Mark has extensive experience in handling these and many other employment and labor issues.
"opened by mistake. but i have kept all your contact info and will be in touch for anything we need in the future!"
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Promissory note for borrowing money
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Doc Type: Promissory Note Agreement
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