A Demand Letter For Payment Of Promissory Note is a crucial document in Canadian debt collection practices, typically used when a borrower has defaulted on their payment obligations under a promissory note. This document serves as a formal notice and often represents the final step before initiating legal proceedings. It is governed by Canadian federal legislation, particularly the Bills of Exchange Act and Interest Act, along with provincial regulations on debt collection and civil procedure. The letter should be used when informal attempts to collect payment have failed and the creditor is prepared to take legal action. It must include specific details about the debt, including the original promissory note date, amount borrowed, current amount due with interest calculations, payment deadline, and clear consequences of non-payment. This document is particularly important as it often serves as evidence in subsequent legal proceedings and demonstrates the creditor's reasonable attempts to collect the debt before pursuing court action.

1. Sender's Information: Full legal name, address, and contact information of the creditor or their legal representative

2. Date: Current date of the demand letter

3. Recipient's Information: Full legal name and address of the debtor

4. Re: Line: Clear reference to the promissory note and its date

5. Formal Demand Statement: Clear statement that this is a formal demand for payment under the promissory note

6. Debt Details: Original principal amount, current balance, interest rate, and calculation of total amount due

7. Payment Terms: Specific deadline for payment and acceptable payment methods

8. Legal Consequences: Statement of legal action that will be taken if payment is not received by the deadline

9. Closing: Formal closing, signature block, and title of sender