The Bond Promissory Note is a specialized financial instrument utilized in the Nigerian market for securing significant financial commitments while providing flexibility in terms of structure and security arrangements. This document type is particularly valuable when parties require a more structured approach than a simple promissory note but may not want the complexity and cost associated with a full bond issuance. It incorporates elements of both instruments, providing the straightforward promise to pay characteristic of promissory notes while including bond-like features such as detailed payment schedules, security arrangements, and potential transferability. The document is commonly used in commercial lending, project financing, and structured investment transactions, offering a balance between formal security and practical functionality while ensuring compliance with Nigerian financial regulations and legal requirements.

1. Parties: Identification of the Maker (Promisor/Issuer) and the Payee (Promisee/Holder) with full legal names and addresses

2. Background: Context of the issuance, including the underlying transaction or purpose for which the bond promissory note is being issued

3. Definitions: Key terms used throughout the document, including financial terms, dates, and technical references

4. Promise to Pay: Unconditional promise to pay a specific sum, including the principal amount, currency, and maturity date

5. Interest Rate and Calculation: Specification of interest rate, calculation method, and payment frequency

6. Payment Terms: Details of payment schedule, method of payment, and place of payment

7. Security Provisions: Details of any collateral or security backing the note

8. Events of Default: Circumstances that constitute default and consequences thereof

9. Acceleration Clause: Conditions under which the full amount becomes immediately due and payable

10. Representations and Warranties: Standard declarations about the maker's capacity and authority to issue the note

11. Transferability: Terms governing the transfer or assignment of the note

12. Governing Law: Specification of Nigerian law as the governing law and jurisdiction

13. Execution: Signature blocks and attestation requirements