Amended Promissory Note for the United Kingdom

Amended Promissory Note Template for England and Wales

An Amended Promissory Note is a legal document under English and Welsh law that modifies the terms of an existing promissory note. It maintains the core obligation of payment while updating specific terms such as payment schedule, interest rate, or other conditions. The document must comply with the Bills of Exchange Act 1882 and related legislation, ensuring the amendments are properly documented and legally enforceable while preserving the original note's validity.

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What is a Amended Promissory Note?

An Amended Promissory Note becomes necessary when parties need to modify the terms of an existing promissory note without creating an entirely new obligation. It's commonly used when refinancing debt, adjusting payment terms, or accommodating changed circumstances between the parties. The document must comply with English and Welsh law, particularly the Bills of Exchange Act 1882, and typically includes details of the original note, specific amendments, and any continuing security arrangements. This type of amendment ensures the original obligation remains intact while implementing agreed changes.

What sections should be included in a Amended Promissory Note?

1. Original Note Reference: Details of the original promissory note being amended, including date, parties, and original principal amount

2. Amendment Details: Specific modifications being made to the original note, clearly stating what terms are being changed

3. Principal Amount: Statement of the current outstanding amount of the note and any changes to the principal

4. Interest Rate: Clear specification of any updates to interest rate terms, calculation method, and payment frequency

5. Payment Terms: Modified payment schedule or terms, including payment dates, amounts, and method of payment

6. Effective Date: Specification of when the amendments take effect and confirmation of continuing validity of unchanged terms

What sections are optional to include in a Amended Promissory Note?

1. Security Provisions: Details of collateral or security arrangements when the note is secured by assets

2. Guarantor Acknowledgment: Section for guarantors to acknowledge and confirm their continuing obligations under the amended note

3. Default Provisions: Modified terms regarding events of default, consequences, and remedies

What schedules should be included in a Amended Promissory Note?

1. Original Promissory Note: Complete copy of the original promissory note being amended

2. Payment Schedule: Detailed amortization or payment schedule showing modified payment terms

3. Security Details: Comprehensive description of security or collateral arrangements for secured notes

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

England and Wales

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Industries

Bills of Exchange Act 1882: Primary legislation governing promissory notes in England and Wales. Defines valid promissory notes (Section 83) and establishes requirements for form and content.

Law of Property (Miscellaneous Provisions) Act 1989: Relevant for secured promissory notes and sets out requirements for creation of legal charges.

Consumer Credit Act 1974: Applies if the promissory note involves a consumer transaction. Sets out regulatory requirements and consumer protections.

Limitation Act 1980: Establishes statutory limitation periods for enforcement, generally 6 years for simple contracts.

Contract Law Principles: Common law fundamentals including consideration, capacity to contract, and intention to create legal relations.

Doctrine of Amendment: Common law rules regarding valid amendments to existing agreements and the requirement for consideration in amendments.

Stamp Duty Legislation: Tax considerations for certain types of promissory notes and their amendments.

Financial Services and Markets Act 2000: May be applicable depending on the nature and context of the promissory note transaction.

Money Laundering Regulations 2017: Regulatory requirements for compliance with anti-money laundering provisions in financial transactions.

Teams

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