Promissory Note

Promissory Note

Also known as a legally binding ‘IOU’ from the issuer of the note to the noteholder. The note can feature interest to accrue on the debt. Furthermore, the debt can be repayable on a specific date, after a specific period of time or on demand by the noteholder.

A promissory note is like a cheque in that it can be endorsed onwards by the noteholder, in which case the debt is transferred along with the note.

Promissory notes can be extremely convenient when used as a form of consideration instead of actual payments of cash, especially when used in corporate reorganisations (ie, to reflect the flow of funds around the group without actual transfers of cash needing to be made).

Online Price: AUD$440.00 (including review and advise by a solicitor for up to two hours)

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