A Bond Promissory Note is commonly used in South African secured lending transactions where a debt obligation needs to be formally documented in conjunction with property security. This document type is particularly relevant when financing real estate purchases or securing business loans with property assets. The Bond Promissory Note must comply with South African legislation, including the Bills of Exchange Act 34 of 1964, the Deeds Registries Act 47 of 1937, and the National Credit Act 34 of 2005. It typically includes detailed terms regarding the principal amount, interest calculations, payment schedules, and default provisions, while also referencing the associated mortgage bond registration. The document serves as both evidence of debt and a legally enforceable promise to pay, making it a crucial instrument in secured lending arrangements.

1. Parties: Identification of the Maker (debtor/mortgagor) and Payee (creditor/mortgagee) with full legal names and details

2. Background: Context of the debt obligation and reference to any related mortgage bond or security arrangements

3. Definitions: Key terms used in the document including 'Principal Sum', 'Interest Rate', 'Payment Date', and security-related terminology

4. Promise to Pay: Unconditional promise to pay the specified amount, including the principal sum and interest rate

5. Payment Terms: Detailed terms of payment including schedule, method, and place of payment

6. Security Provisions: Reference to and details of the mortgage bond or other security provided

7. Interest Calculation: Method and frequency of interest calculation and compound interest provisions if applicable

8. Default Provisions: Consequences of default, including acceleration clauses and enforcement rights

9. Costs and Charges: Provisions for legal costs, collection charges, and other expenses

10. Governing Law: Confirmation of South African law as governing law and jurisdiction