Time Promissory Note for the United Kingdom

Time Promissory Note Template for England and Wales

A Time Promissory Note is a formal written promise to pay a specified sum of money at a predetermined future date. Under English and Welsh law, it serves as a legally binding instrument governed primarily by the Bills of Exchange Act 1882. The document includes specific payment terms, interest rates if applicable, and clearly identifies both the maker and payee. It can be used as evidence of debt and is enforceable in courts within England and Wales.

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What is a Time Promissory Note?

A Time Promissory Note is commonly used when there is a need to formalize a debt obligation with a specific future payment date. This document type is particularly relevant in England and Wales, where it is governed by the Bills of Exchange Act 1882 and related legislation. The Time Promissory Note includes essential details such as the principal amount, payment date, party information, and any applicable interest rates. It serves as both a proof of debt and a legally enforceable instrument, making it valuable for various commercial and private lending arrangements. The document's formal nature provides security to the payee while clearly defining the maker's obligations.

What sections should be included in a Time Promissory Note?

1. Date: Date of issuance of the promissory note

2. Promise to Pay: Unconditional promise to pay a specific sum including maker's declaration

3. Payment Amount: Specific sum to be paid, expressed in both numbers and words

4. Maturity Date: Specific date when payment is due

5. Maker Details: Full legal name and address of person making the promise

6. Payee Details: Full legal name and address of person to whom payment is promised

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

1. Interest Rate: Terms of interest including rate, calculation method, and payment frequency

2. Security: Details of any collateral or security arrangements securing the note

3. Payment Schedule: Schedule of installment payments including amounts and due dates

4. Default Provisions: Terms specifying events of default and consequences

What schedules should be included in a Time Promissory Note?

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment dates and amounts if installment payments apply

2. Schedule 2 - Security Details: Comprehensive description of any collateral or security arrangements

3. Schedule 3 - Guarantor Information: Details of any guarantors including full legal names, addresses and obligations

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. Section 83 defines promissory notes, while Section 89 outlines specific requirements for their validity.

Law of Property (Miscellaneous Provisions) Act 1989: Legislation relevant for any security interests that may be associated with the promissory note.

Limitation Act 1980: Sets statutory limitation periods for enforcing promissory notes, typically 6 years from the date of breach.

Consumer Credit Act 1974: Applicable if the promissory note involves consumer credit arrangements or consumer protection matters.

Financial Services and Markets Act 2000: Relevant if the promissory note could be classified as a regulated financial instrument under UK financial services law.

Unfair Contract Terms Act 1977: Ensures that terms within the promissory note are fair and enforceable under English law.

Common Law Contract Principles: Fundamental principles including offer, acceptance, consideration, intention to create legal relations, and capacity to contract that must be considered in drafting.

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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