Promissory Note Secured By Personal Property for the United Kingdom

Promissory Note Secured By Personal Property Template for England and Wales

A legally binding document governed by English and Welsh law that combines a promise to pay a specific sum with security interest in personal property. It creates a dual obligation: first, the maker's promise to pay the stated amount according to specified terms, and second, a security interest in personal property that serves as collateral for the debt. The document must comply with both the Bills of Exchange Act 1882 and relevant property security legislation.

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What is a Promissory Note Secured By Personal Property?

A Promissory Note Secured By Personal Property is used when a party needs to document both a debt obligation and provide security for that debt using personal property as collateral. Under English and Welsh law, this document serves multiple purposes: it evidences the debt, establishes payment terms, and creates a security interest in specified personal property. The document is commonly used in business financing, asset purchases, and private lending arrangements where the lender requires additional security beyond a simple promise to pay. It must comply with relevant legislation including the Bills of Exchange Act 1882 and the Bills of Sale Acts.

What sections should be included in a Promissory Note Secured By Personal Property?

1. Date: Date of execution of the promissory note

2. Parties: Identification of maker (promisor) and payee (promisee)

3. Promise to Pay: Unconditional promise to pay a specific sum

4. Payment Terms: Amount, interest rate, payment schedule, and maturity date

5. Security Details: Description of personal property serving as security

6. Default Provisions: Consequences of default and acceleration clauses

What sections are optional to include in a Promissory Note Secured By Personal Property?

1. Prepayment Terms: Use when early payment is allowed, specifying any penalties

2. Late Payment Provisions: Use when specific late payment fees or consequences apply

3. Assignment Rights: Use when transfer rights need to be specified

4. Insurance Requirements: Use when security requires insurance coverage

What schedules should be included in a Promissory Note Secured By Personal Property?

1. Schedule of Personal Property: Detailed description of secured property including serial numbers, locations

2. Payment Schedule: Detailed breakdown of payment dates and amounts

3. Property Valuation: Independent valuation of secured property if required

4. Insurance Certificates: Copies of required insurance documentation

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

Law of Property Act 1925: Primary legislation governing the creation and enforcement of security interests in property. Essential for establishing the legal framework of security interests in the promissory note.

Bills of Exchange Act 1882: Fundamental legislation providing the legal framework for negotiable instruments, including promissory notes. Defines essential requirements for valid promissory notes and their enforcement.

Consumer Credit Act 1974: Regulatory framework for credit agreements when the borrower is a consumer. Provides important consumer protections and compliance requirements.

Financial Services and Markets Act 2000: Relevant legislation if the promissory note could be classified as a regulated financial instrument. Sets out regulatory requirements and restrictions.

Bills of Sale Acts 1878 and 1882: Governs security over personal chattels and sets out registration requirements for certain types of security interests in personal property.

Companies Act 2006: Applicable when corporate entities are involved. Specifies requirements for company charges and their registration.

Common Law Principles: Established legal principles regarding contract formation, security interests, and enforcement rights that supplement statutory requirements.

Financial Collateral Arrangements (No.2) Regulations 2003: Relevant regulations when financial collateral is involved in the security arrangement.

Unfair Contract Terms Act 1977: Legislation controlling unreasonable terms in contracts, ensuring fairness in contractual relationships.

Data Protection Act 2018: Relevant when handling personal data in the context of the promissory note and security arrangement.

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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