Non-Recourse Promissory Note is a legal instrument signed by the borrower of money to provide surety towards the repayment of the borrowed money for business purpose. However, the term Non Recourse has a significant meaning and this term is used more frequently while signing commercial and small business promissory notes.
The term Non Recourse frees the borrower from the consequences of a payment default on a personal level. However, the borrower must submit a business property worth the debt to secure it. This Non Recourse Promissory Note is not intended to be prepaid. This written and signed promise of paying the debt does not require notarization of the signature for its legal standing and execution. However, this Non Recourse Promissory Note is considered as Secured Promissory Note.
The Non Recourse Promissory Note has a provision to pledge the common stock shares of the Company towards the surety of repayment. The borrower pledges to repay the borrowed money in valid US currency at the place mentioned in the promissory note.
- Read provisions for pledging the common stock shares of the Company carefully.
- Notarization of the signature is not necessary for the execution of this Non Recourse Promissory Note.
- This promissory note is not intended to release funds for any personal expenses. The money disbursed by signing and executing the Non Recourse Promissory Note is utilized for business purpose only.
- Please mention the jurisdiction by providing the state name in the space reserved for the same.
- Enter the total amount and rate of interest carefully.
- Please make copies of the Non Recourse Promissory Note and handover to all concerned parties for record purpose.
How to Fill Non Recourse Promissory Note
- Begin by entering the total amount agreed on the first line of the Non Recourse Promissory Note.
- Then mention the date of execution of this promissory note on the next line in the required format.
- Mention the name of the Company/Lender in the respective spaces. Then enter the date of the repayment of the debt on the succeeding line. Continue by mentioning the amount in words and figure. Use US Dollar as currency. Then enter the applicable rate of interest on the blank space provided for the same in this portion of the Non Recourse Promissory Note.
- Enter the name of the state of the United States to define the jurisdiction of the promissory note.
- Then enter the date in the required format like day, month, and year on the subsequent line.
- Sign on the last line of the Non Recourse Promissory Note to complete filling this legal instrument.