Promissory Note With Interest for Germany

Promissory Note With Interest Template for Germany

A Promissory Note With Interest under German law (Schuldschein mit Zinsen) is a formal written promise to pay a specified sum of money at a predetermined date, including interest payments calculated at an agreed rate. This document, governed by German civil law, particularly the Bürgerliches Gesetzbuch (BGB), serves as a legally binding debt instrument that can be used in both commercial and private contexts. It includes detailed provisions for interest calculation, payment terms, default consequences, and any applicable security arrangements, while ensuring compliance with German usury laws and documentation requirements.

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What is a Promissory Note With Interest?

A Promissory Note With Interest is commonly used in German business and private lending transactions where a formal documentation of debt obligation is required. This instrument, governed by German law, provides a clear and enforceable record of a promise to repay a specific amount plus interest under defined terms. The document is particularly useful in situations requiring a straightforward yet legally robust debt instrument, whether for business financing, private loans, or structured payment arrangements. It includes essential elements such as the principal amount, interest rate, payment schedule, and parties' details, while complying with German civil law requirements. The Promissory Note With Interest can be used either as a standalone document or as part of a larger financing arrangement, offering flexibility while maintaining legal certainty under German jurisdiction.

What sections should be included in a Promissory Note With Interest?

1. Identification of Parties: Full legal names and addresses of the promissor (debtor) and promissee (creditor)

2. Principal Amount: Clear statement of the principal amount being borrowed, expressed both in numbers and words

3. Interest Rate: Specification of the interest rate, calculation method, and payment frequency

4. Payment Terms: Details of when and how payments of principal and interest will be made, including the maturity date

5. Place of Payment: Specification of where and how payments should be made

6. Default Provisions: Consequences of missed payments or other defaults

7. Governing Law: Statement that the note is governed by German law

8. Signature Block: Space for dated signatures of the promissor and witness if required

What sections are optional to include in a Promissory Note With Interest?

1. Security Provisions: Include when the note is secured by collateral or guarantees

2. Prepayment Terms: Include when early repayment is permitted, specifying any penalties or conditions

3. Transfer Rights: Include when the note may be transferred or assigned to other parties

4. Late Payment Penalties: Include when specific penalties for late payments are to be imposed

5. Consumer Protection Notices: Include when the promissor is a consumer, containing mandatory consumer protection warnings

6. Currency Conversion: Include when payments may be made in multiple currencies

What schedules should be included in a Promissory Note With Interest?

1. Payment Schedule: Detailed amortization table showing principal and interest payments over the term of the note

2. Interest Calculation Methods: Detailed explanation of interest calculation formulas and examples

3. Security Details: Description of any collateral or security arrangements if applicable

4. Guarantor Information: Details of any guarantors and the extent of their guarantees if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant Industries

Banking & Financial Services

Real Estate

Corporate Finance

Private Lending

Investment

Construction

Manufacturing

Small Business

Agriculture

Commercial Real Estate

Retail

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Private Banking

Investment

Risk Management

Business Development

Loan Administration

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Financial Controller

Legal Counsel

Corporate Lawyer

Loan Officer

Investment Manager

Account Manager

Risk Manager

Compliance Officer

Business Development Manager

Private Banker

Financial Advisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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