Document background
An IOU Promissory Note under Belgian law is a crucial financial instrument used to formalize debt obligations between parties. This document type is commonly utilized in various scenarios, from business loans to private lending arrangements, where one party needs to document a formal promise to pay another. The promissory note must comply with Belgian legal requirements, particularly the Belgian Civil Code and the Law of 1 March 1961, which specify mandatory content and formal requirements. The document typically includes the amount owed, payment terms, interest rates (if applicable), and consequences of default. It serves as both a proof of debt and a legally enforceable instrument, making it particularly valuable for financial planning, risk management, and potential debt recovery procedures.
