NEGOTIABLE PROMISSORY NOTE

Amount of Loan (specify Rs) Place
  Date

THIS PROMISSORY NOTE (the "Note") is effective as of the date it is executed by (specify name of Maker), "Maker," located at (specify address), for the purpose of evidencing an obligation from Maker to (specify name of Payee) "Payee," located at (specify address).

1. PROMISE TO PAY. For value received, Maker promises to pay Payee at (specify address), or at such other place as may be designated in writing by the holder of this Note, the total sum of (specify Rs) (specify with or without interest, costs, and fees) to be paid (specify the dates and amounts of payments). The cheques for all installment payments are to be made payable to (specify name) and mailed directly to (specify address).

2. NOTICE OF NONPAYMENT. If Maker fails to make a payment set forth above on its due date, Payee shall give Maker written notice of such nonpayment. The date of such notice shall be deemed to be the date that Payee transmits such notice by registered mail or facsimile at the following address (specify). Maker shall have ten (10) days from the date of such notice to make said payment.

3. NO OFFSETS. Maker agrees to pay this Note free from any offset, deduction, or counterclaim.

4. PREPAYMENT. This Note may be prepaid in whole or in part at any time.

5. DEFAULT AND ACCELERATION. Maker shall be immediately in default upon the occurrence of any of the following events: (a) Maker fails to pay any amount due hereunder in full when due and Maker fails to make such payment pursuant to the ten-day notice provisions of Clause 2 hereinabove; (b) Maker violates or otherwise fails to perform or observe any term, covenant, or agreement contained in this Note; (c) the winding up, liquidation, or dissolution of Maker; (d) sale or transfer of substantially all of Maker's assets; (e) a receiver is appointed for all or any part of Maker's property; (f) Maker makes an assignment for the benefit of its creditors; or (g) Maker files or has filed for protection under any bankruptcy law. In the event that Maker defaults under this Note, then, at the option of the holder of this Note, the entire unpaid balance of principal shall become immediately due and payable.

6. WAIVERS. Maker waives presentment, protest and demand, notice of protest, dishonor and nonpayment of this Note and expressly agrees that this Note, or any payment hereunder, may be extended from time to time at the written consent of the holder, all without in any way affecting the liability of Maker.

7. ATTORNEY'S FEES AND INTEREST. If an event of default has occurred and the holder of this Note refers it to any attorney for collection, Maker agrees to pay all costs and reasonable attorney's fees incurred by the holder of this Note in connection therewith. Interest shall accrue from the date of default at the rate of (specify %) per annum or the maximum legal interest rate, whichever is greater.

8. CONSTRUCTION. This Note shall be governed by and construed and enforced under the Indian laws.

9. SUCCESSORS. The terms and conditions of this Note shall inure to the benefit of and be binding jointly and severally upon the successors, assigns, heirs, survivors, and personal representatives of Maker and shall inure to the benefit of any holder, its legal representatives, successors, and assigns.

10. NO BREACH. No breach of any provision of this Note shall be deemed waived unless it is waived in writing. Waiver of any one breach shall not be deemed a waiver of any other breach of the same or any other provision of this Note.

11. AMENDMENTS. This Note may be amended or modified only by written agreement duly executed by Maker and Payee or the holder of this Note.

12. NO DEFAULT. If the due date of any payment under this Note falls on a Saturday, Sunday, or public holiday, such payment may be made on the next business day without constituting a default in payment under this Note.

13. DISHONORED CHEQUE. In the event that any payment on this Note is made by cheque that is dishonored by the drawee bank, for any reason whatsoever, there shall be added to the amount owing under this Note the sum of Rs. 200 to cover the banking charges and expenses related to such dishonored cheque.

  "Maker"
_____________________
  Signature of Maker

Witness: ___________

Dated: _____________

 

ABSOLUTELY NO WARRANTIES ARE MADE REGARDING THE SUITABILITY OF THESE FORMS FOR ANY PARTICULAR PURPOSE. IT IS ADVISABLE THAT IMPORTANT DOCUMENTATIONS ARE PREPARED OR VETTED BY EXPERT. LEGAL ADVICE OF ANY NATURE SHOULD BE SOUGHT FROM COMPETENT, INDEPENDENT, LEGAL EXPERT IN THE RELEVANT JURISDICTION.
 
APPOINT CHAMBER PRACTICE EMAIL POST YOUR QUERY APPOINT AS RETAINER HOME