The Promissory Note With Collateral is a versatile financing instrument commonly used in German business and commercial transactions when a borrower needs to document a debt obligation while providing security to the lender. This document type combines the features of a standard promissory note (Schuldschein) with security interests in specific assets, making it particularly useful for secured financing arrangements. It is governed by German law and must comply with specific formal requirements under the German Civil Code (BGB) and related legislation. The document is typically used in business loans, asset financing, real estate transactions, and other commercial financing scenarios where the lender requires security for the debt. It includes detailed provisions about the debt obligation, collateral description, maintenance requirements, enforcement rights, and procedures for realizing the security interest in case of default.

1. Parties: Identification of the Issuer (Schuldner) and Holder (Gläubiger) of the promissory note, including full legal names and addresses

2. Background: Brief context of the transaction and relationship between the parties

3. Definitions: Key terms used in the document, including specific German legal terminology

4. Promise to Pay: Unconditional promise to pay a specific sum (including currency, amount in numbers and words) on a specified date or dates

5. Interest: Interest rate, calculation method, and payment schedule

6. Collateral Description: Detailed description of the assets serving as collateral, including their location and identifying characteristics

7. Security Grant: Legal language creating the security interest in the collateral

8. Representations and Warranties: Issuer's declarations regarding ownership and right to pledge collateral

9. Maintenance of Collateral: Obligations regarding preservation and maintenance of the collateral

10. Events of Default: Circumstances that trigger immediate repayment and enforcement rights

11. Enforcement Rights: Holder's rights and procedures for enforcing the security interest upon default

12. Governing Law: Explicit statement that German law governs the note and security interest