Secured Promissory Note for Singapore

Secured Promissory Note Template for Singapore

A Secured Promissory Note under Singapore law is a legally binding instrument that documents a promise to repay a specific sum of money, backed by collateral. It combines the straightforward nature of a promissory note with the additional security of collateral, providing the lender with specific rights over the secured assets in case of default. The document is governed by Singapore's contract and securities laws, offering robust enforceability within the jurisdiction.

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What is a Secured Promissory Note?

A Secured Promissory Note is commonly used in Singapore when parties require a formal documentation of a loan arrangement with added security. This document is particularly useful when the borrower and lender want to establish clear terms for repayment while providing specific assets as collateral. The note typically includes details about the principal amount, interest rate, payment schedule, and description of the security. Under Singapore law, this document type offers stronger protection than an unsecured note, as it gives the lender recourse to specific assets in case of default. The document must comply with Singapore's Contracts Act, Securities and Futures Act, and other relevant legislation.

What sections should be included in a Secured Promissory Note?

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Context of the loan arrangement and purpose

3. Definitions: Key terms used in the note including 'Security', 'Interest Rate', 'Default', etc.

4. Promise to Pay: Core commitment to repay principal and interest, including the principal amount

5. Interest Rate: Specified interest rate, calculation method, and payment frequency

6. Security Details: Description of collateral securing the note and its valuation

7. Payment Terms: Repayment schedule, methods of payment, and due dates

8. Events of Default: Circumstances constituting default and consequences

9. Enforcement Rights: Lender's rights and remedies upon default

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

1. Prepayment Provisions: Terms for early repayment including any penalties or notices required

2. Late Payment Penalties: Additional charges and interest rates applicable for delayed payments

3. Assignment Rights: Conditions under which the note may be assigned or transferred

4. Representations and Warranties: Additional assurances regarding the borrower's capacity and security

What schedules should be included in a Secured Promissory Note?

1. Schedule A - Payment Schedule: Detailed repayment timeline with amounts and due dates

2. Schedule B - Security Description: Detailed description of collateral including registration numbers and locations

3. Appendix 1 - Valuation Report: Independent valuation of security assets

4. Appendix 2 - Security Registration Documents: Copies of security registration certificates and filing records

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

Singapore

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore. Essential for basic promissory note structure and enforceability.

Securities and Futures Act (Cap. 289): Regulates securities and financial instruments. Relevant for determining if the note qualifies as a security and associated compliance requirements.

Property Act (Cap. 242): Governs property rights and interests in Singapore. Relevant when the promissory note is secured by property.

Moneylenders Act (Cap. 188): Regulates moneylending activities. May be applicable if the note involves certain types of lending arrangements.

Companies Act (Cap. 50): Relevant for corporate securities and when either party is a company. Contains provisions about company charges and securities.

Registration of Deeds Act (Cap. 269): Governs the registration of instruments affecting land. Important if the security involves real property.

Conveyancing and Law of Property Act (Cap. 61): Contains provisions about property transactions and securities. Essential when the note is secured by real property.

Civil Law Act (Cap. 43): Contains general provisions about civil law matters including contract enforcement and remedies.

Rules of Court: Procedural rules for enforcing the promissory note through Singapore courts if default occurs.

Limitation Act (Cap. 163): Sets time limits for bringing legal actions. Important for enforcement and validity period of the note.

Stamp Duties Act: Governs stamp duty requirements for legal documents. Relevant for proper execution and registration of the note.

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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