[{"data":1,"prerenderedAt":519},["ShallowReactive",2],{"document-demand-note-D429":3},{"document":4,"label":26,"preview":11,"thumb":27,"thumb600":28,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":29,"breadcrumb":33,"related":41,"customDescModule":183,"customdescription":6,"mdFm":184,"mdProseHtml":518},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":25},"DEMAND NOTE This Demand Note Payable on Demand (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Borrower jointly and severally promises to pay to the order of Lender, the sum of [AMOUNT], together with interest of [%] per annum on the unpaid balance. The entire principal and any accrued interest shall be fully and immediately payable UPON DEMAND of Lender thereof.",null,"Demand Note","1",28,"doc","https://templates.business-in-a-box.com/imgs/1000px/demand-note-D429.png","https://templates.business-in-a-box.com/imgs/250px/429.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#429.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":23,"url":24},"Promissory Notes","/templates/promisory-note/","demand note","Demand Note Template","https://templates.business-in-a-box.com/imgs/400px/429.png","https://templates.business-in-a-box.com/imgs/600px/429.png",[30,16,19,22],{"label":31,"url":32},"Templates","/templates/",[34,35,38],{"label":31,"url":32},{"label":36,"url":37},"Legal Agreements","/templates/business-legal-agreements/",{"label":39,"url":40},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[42,46,50,54,58,62,66,70,74,78,82,86,90,108,123,137,151,166],{"label":43,"url":44,"thumb":45,"extension":10},"Demand to Pay Promissory Note","/template/demand-to-pay-promissory-note-D207","https://templates.business-in-a-box.com/imgs/250px/207.png",{"label":47,"url":48,"thumb":49,"extension":10},"Demand for Payment on Installment Promissory Note","/template/demand-for-payment-on-installment-promissory-note-D428","https://templates.business-in-a-box.com/imgs/250px/428.png",{"label":51,"url":52,"thumb":53,"extension":10},"Demand of Delivery","/template/demand-of-delivery-D1057","https://templates.business-in-a-box.com/imgs/250px/1057.png",{"label":55,"url":56,"thumb":57,"extension":10},"Demand Letter","/template/demand-letter-D13262","https://templates.business-in-a-box.com/imgs/250px/13262.png",{"label":59,"url":60,"thumb":61,"extension":10},"Demand on Guarantor","/template/demand-on-guarantor-D398","https://templates.business-in-a-box.com/imgs/250px/398.png",{"label":63,"url":64,"thumb":65,"extension":10},"Demand for Payment on Guarantees","/template/demand-for-payment-on-guarantees-D204","https://templates.business-in-a-box.com/imgs/250px/204.png",{"label":67,"url":68,"thumb":69,"extension":10},"Demand for Shipping Instructions","/template/demand-for-shipping-instructions-D1098","https://templates.business-in-a-box.com/imgs/250px/1098.png",{"label":71,"url":72,"thumb":73,"extension":10},"Final Demand for Payment_Letter","/template/final-demand-for-payment_letter-D214","https://templates.business-in-a-box.com/imgs/250px/214.png",{"label":75,"url":76,"thumb":77,"extension":10},"Balloon Note","/template/balloon-note-D426","https://templates.business-in-a-box.com/imgs/250px/426.png",{"label":79,"url":80,"thumb":81,"extension":10},"Credit Note","/template/credit-note-D13639","https://templates.business-in-a-box.com/imgs/250px/13639.png",{"label":83,"url":84,"thumb":85,"extension":10},"Delivery Note","/template/delivery-note-D12712","https://templates.business-in-a-box.com/imgs/250px/12712.png",{"label":87,"url":88,"thumb":89,"extension":10},"Mortgage Note","/template/mortgage-note-D1182","https://templates.business-in-a-box.com/imgs/250px/1182.png",{"description":91,"descriptionCustom":6,"label":92,"pages":93,"size":94,"extension":10,"preview":95,"thumb":96,"svgFrame":97,"seoMetadata":98,"parents":99,"keywords":106,"url":107},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[100,102,104],{"label":17,"url":101},"finance-accounting",{"label":20,"url":103},"business-loan",{"label":23,"url":105},"promisory-note","promissory note","/template/promissory-note-D434",{"description":109,"descriptionCustom":6,"label":110,"pages":111,"size":112,"extension":10,"preview":113,"thumb":114,"svgFrame":115,"seoMetadata":116,"parents":118,"keywords":117,"url":122},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2",513,"https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":117,"description":6},"loan agreement",[119,120,121],{"label":17,"url":101},{"label":20,"url":103},{"label":20,"url":103},"/template/loan-agreement-D417",{"description":124,"descriptionCustom":6,"label":125,"pages":93,"size":112,"extension":10,"preview":126,"thumb":127,"svgFrame":128,"seoMetadata":129,"parents":131,"keywords":135,"url":136},"LINE OF CREDIT AGREEMENT This Line of Credit Agreement (\"Agreement\") is entered into effect as of [DATE], BETWEEN: [LENDER NAME], (\"Leader\"), an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [BORROWER NAME], (\"Borrower\") an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Borrower has requested a line of credit from the Lender, and the Lender is willing to extend such line of credit to the Borrower under the terms and conditions set forth in this Agreement; NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the parties agree as follows: LINE OF CREDIT The Lender agrees to extend to the Borrower a line of credit up to a maximum amount of [MAXIMUM CREDIT AMOUNT] ([CURRENCY SYMBOL] [AMOUNT]), subject to the terms and conditions of this Agreement (the \"Line of Credit\"). DRAWS 2.1 The Borrower may draw on the Line of Credit from time to time, as needed, provided that the total amount of all outstanding draws does not exceed the maximum amount of the Line of Credit. Each draw must be requested in writing by the Borrower and shall be subject to the Lender's approval. INTEREST RATE 3.1 The outstanding balance of the Line of Credit shall accrue interest at a rate of [INTEREST RATE]% per annum. Interest shall be calculated on a [e.g., 360/365]-day basis and charged monthly. REPAYMENT 4","Line Of Credit Agreement","https://templates.business-in-a-box.com/imgs/1000px/line-of-credit-agreement-D14003.png","https://templates.business-in-a-box.com/imgs/250px/14003.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#14003.xml",{"title":130,"description":6},"line of credit agreement",[132,134],{"label":36,"url":133},"business-legal-agreements",{"label":36,"url":133},"line credit agreement","/template/line-of-credit-agreement-D14003",{"description":138,"descriptionCustom":6,"label":139,"pages":140,"size":141,"extension":10,"preview":142,"thumb":143,"svgFrame":144,"seoMetadata":145,"parents":146,"keywords":149,"url":150},"CONVERTIBLE NOTE AGREEMENT This Convertible Note Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NOTE HOLDERS NAME] (the \"Note Holders\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Note Holders are willing to lend Company the aggregate sum of [AMOUNT] be evidenced by [%] Convertible Promissory Notes. In consideration of the mutual covenants and conditions herein contained, the parties hereby agree, represent and warrant as follows: Issue of Notes The Company will authorize the issue of its [%] Convertible notes (hereinafter called \"Notes\") in the aggregate principal amount of [amOUNT] to be dated [date] to mature on [date] to bear interest on the unpaid principal thereof at the rate of [%] per annum until maturity, payable on the [day] of [month] in each year, commencing on [date], [year], and after maturity at the rate of [%] per annum until paid, and to be substantially in the form of Exhibit A attached hereto. For the purposes of calculating interest for any period for which the interest shall be payable, such interest shall be calculated on the basis of a [number] day month and a [number] day year. The Company will promptly and punctually pay to Note Holders or their nominee the interest on any of the Notes held by Note Holders without presentment of the Notes. In the event that Note Holders shall sell or transfer any of the Notes, they shall notify the Company of the name and address of the transferee. In the event the Company defaults on any installment of interest or principal, then any Holder of these Notes may, at his option, without notice, declare the entire principal and the interest accrued thereon immediately due and payable and may proceed to enforce the collection thereof. All the Notes shall contain a confession of judgment provision. The Company will also authorize the issue of [number] shares of its common stock (hereinafter called \"The Stock\") and will authorize the issuance of and reserve for such purchase such a number of additional shares of common stock (hereinafter called the \"Conversion Stock\") as may from time to time be the maximum number required for issuance upon conversion of the Notes pursuant to the conversion privileges hereinafter stated. Sale and Purchase of Notes and Stock The Company will sell the Notes to the purchasers listed on Exhibit A, each of whom agrees to purchase the principal amount of the Notes set opposite their names, subject to the terms and conditions hereof and in reliance upon the representations and warranties of the Company contained herein, at the purchase price of [%] of the principal amount. Representations and Warranties by the Company Company is a corporation duly organized and existing in good standing under the laws of the State of [state/province] has the corporate power to own its own property and to carry on in the business as it is now being conducted. Company has on its corporate records the names of the following individuals who each own [number] shares of common stock which constitute all the issue and outstanding capital stock of the Company as of this date. The Company has furnished to the Note Holders an Offering Circular which is attached hereto as Exhibit B. The financial statements contained therein are true and correct and have been prepared in accordance with generally accepted accounting principles consistently followed throughout the period indicated. There is no action or proceeding pending or, to the knowledge of the Company, threatened against the Company before any court or administrative agency, the determination of which might result in any material adverse change in the business of the Company. The Company has title to the respective properties and assets including the properties and assets reflected on the financial statement for the year ending [date] and which assets and properties are subject to no liens, mortgages, encumbrances or charges except a security interest to [specify]. The Company is not a party to any contract or agreement or subject to any restriction which materially and adversely affects its business, property or assets, or financial condition, and neither the execution nor delivery of this Agreement, nor the confirmation of the transactions contemplated herein, nor the fulfillment of the terms hereof, nor the compliance with the terms and provisions hereof and of the Notes, will conflict with or result in the breach of the terms, conditions or provisions or constitute a default, under the Articles of Incorporation or Code of Regulations of the Company or of any Agreement or instrument to which the Company is now a party. The Company has not declared, set aside, paid or made any dividend or other distributions with respect to its capital stock and has not made or caused to be made directly or indirectly, any payment or other distribution of any nature whatsoever to any of the holders of its capital stock except for regular salary payments for services rendered and the reimbursement of business expenses. All of the equipment and automobiles of the Company are in good condition and repair. There are no outstanding options or rights to purchase shares of the Company and no outstanding securities with the right of conversion into shares of the Company. The Company owns or possesses adequate licenses or other rights to use, all patents, trademarks, trade names, trade secrets, and copyrights used in its business. No one has asserted to the Company that its operations infringe on the patents, trademarks, trade secrets or other rights utilized in the operation of its business. Neither the Company nor any agent or employee acting in its behalf has offered the Notes or the Stock or any portion thereof for sale to or solicited in any offer to buy the same or any thereof from any person or persons other than the purchasers listed in the attached Exhibit A and [NUMBER] other persons, and neither the Company nor any agent or employee acting in its behalf will sell or offer for sale the Notes or Stock or any portion thereof to or solicit any offer to buy the Notes or the Stock from any person or persons so as to bring the issuance or sale thereof within the provisions of Section [NUMBER] of the [ACT]. Representations and Warranties by the Note Holders The Note Holders represent and warrant that: The Note Holders are subscribing for the Notes and Stock for investment purposes and not with the view to or for sale in connection with any distribution thereof and that they have no present intent to sell, give or otherwise transfer the Notes or Stock. The Note Holders state that they are and residents of the State of [state/province]. The Note Holders understand that this is a highly speculative investment in a Company which is insolvent both from a legal and an equity standpoint. Individuals represent and warrant that they have a net worth in excess of [amount] exclusive of their residences and that they are sophisticated investors who are knowledgeable about the [specify] business. Note Holders state that they will be active in the affairs of the business of the Company. Prepayment of the Notes Company shall have the right to make prepayments on principal of the Notes at any time on [number] days written notice. Such prepayment shall be accompanied by a payment of all accrued interest to date. There shall be no premium for the amount so prepaid. Conversion","Convertible Note Agreement","6",64,"https://templates.business-in-a-box.com/imgs/1000px/convertible-note-agreement-D870.png","https://templates.business-in-a-box.com/imgs/250px/870.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#870.xml",{"title":6,"description":6},[147,148],{"label":36,"url":133},{"label":36,"url":133},"convertible note agreement","/template/convertible-note-agreement-D870",{"description":152,"descriptionCustom":6,"label":153,"pages":111,"size":112,"extension":10,"preview":154,"thumb":155,"svgFrame":156,"seoMetadata":157,"parents":159,"keywords":158,"url":165},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":158,"description":6},"personal guarantee",[160,161,162],{"label":17,"url":101},{"label":20,"url":103},{"label":163,"url":164},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":167,"descriptionCustom":6,"label":168,"pages":169,"size":112,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":175,"keywords":174,"url":182},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":174,"description":6},"secured lumpsum promissory note agreement",[176,179],{"label":177,"url":178},"Business Plan Kit","business-plan-kit",{"label":180,"url":181},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",false,{"seo":185,"reviewer":198,"legal_disclaimer":202,"quick_facts":203,"at_a_glance":205,"personas":209,"variants":234,"glossary":261,"clauses":297,"how_to_fill":348,"common_mistakes":389,"faqs":406,"industries":434,"comparisons":451,"diy_vs_lawyer":464,"jurisdictions":477,"related_template_ids_curated":498,"schema":505,"classification":506},{"meta_title":186,"meta_description":187,"primary_keyword":188,"secondary_keywords":189},"Demand Note Template (Free Word)","Free demand note template for family loans, shareholder advances, and short-term lending. Payable on demand, no fixed maturity. Used in 190+ countries. Free Word and PDF download.","demand note template",[190,191,192,193,194,195,196,197],"demand promissory note template","demand note template word","demand note template free","promissory note payable on demand","demand loan agreement template","shareholder demand note template","family loan demand note","short term demand note template",{"name":199,"credential":200,"reviewed_date":201},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":204,"legal_review_recommended":202,"signature_required":202,"notarization_required":183},"medium",{"what_it_is":206,"when_you_need_it":207,"whats_inside":208},"A Demand Note is a legally binding promissory note that requires the borrower to repay the principal and any accrued interest immediately upon the lender's written request — with no fixed maturity date. This free Word download lets you document family loans, owner-to-company advances, or short-term commercial loans in minutes, then export as PDF for signature.\n","Use it when lending money without a fixed repayment schedule — common in family loans, shareholder advances to a corporation, or bridge financing where the lender wants the flexibility to call the loan at any time.\n","Parties and principal amount, interest rate and accrual method, demand and repayment mechanics, default and acceleration, governing law, and signature blocks for borrower and optional co-signer or guarantor.\n",[210,214,218,222,226,230],{"title":211,"use_case":212,"icon_asset_id":213},"Family lenders","Documenting a personal loan to a relative with no fixed repayment date","persona-family-lender",{"title":215,"use_case":216,"icon_asset_id":217},"Small business owners","Advancing personal funds to a wholly owned company on flexible terms","persona-small-business-owner",{"title":219,"use_case":220,"icon_asset_id":221},"Startup founders","Recording a shareholder bridge loan before a formal financing round closes","persona-startup-founder",{"title":223,"use_case":224,"icon_asset_id":225},"Accountants and bookkeepers","Formalizing intercompany or owner-shareholder advances for audit readiness","persona-accountant",{"title":227,"use_case":228,"icon_asset_id":229},"Private lenders","Issuing short-term demand loans to individuals or businesses outside the banking system","persona-private-lender",{"title":231,"use_case":232,"icon_asset_id":233},"Corporate treasurers","Structuring intragroup cash pooling advances that can be recalled without notice","persona-cfo",[235,238,242,246,250,254,258],{"situation":236,"recommended_template":92,"slug":237},"Lending with a fixed maturity date and installment schedule","promissory-note-D434",{"situation":239,"recommended_template":240,"slug":241},"Secured loan where borrower pledges collateral","Secured Promissory Note","secured-lumpsum-promissory-note-agreement-D13041",{"situation":243,"recommended_template":244,"slug":245},"Personal loan between two private individuals","Personal Loan Agreement","loan-agreement-D417",{"situation":247,"recommended_template":248,"slug":249},"Shareholder or director loan to a corporation with formal repayment terms","Shareholder Loan Agreement","shareholder-loan-agreement-D13239",{"situation":251,"recommended_template":252,"slug":253},"Revolving credit line a borrower can draw and repay repeatedly","Line of Credit Agreement","line-of-credit-agreement-D14003",{"situation":255,"recommended_template":256,"slug":257},"Zero-interest loan for which the IRS imputed-interest rules must be navigated","Interest-Free Loan Agreement","free-linking-agreement-D747",{"situation":259,"recommended_template":139,"slug":260},"Bridge financing that converts to equity at a future round","convertible-note-agreement-D870",[262,264,267,270,273,276,279,282,285,288,291,294],{"term":7,"definition":263},"A promissory note with no fixed maturity date that becomes due and payable immediately upon the lender's written demand.",{"term":265,"definition":266},"Principal","The original sum of money lent, exclusive of any interest that accrues over time.",{"term":268,"definition":269},"Accrued Interest","Interest that has accumulated on the outstanding principal balance but has not yet been paid by the borrower.",{"term":271,"definition":272},"Per Annum Rate","The annual interest rate expressed as a percentage of the outstanding principal balance.",{"term":274,"definition":275},"Demand","A written notice from the lender to the borrower requiring repayment of all or part of the outstanding balance, typically effective on delivery or within a short notice window.",{"term":277,"definition":278},"Default","The borrower's failure to repay the full amount owed within the period specified in a demand notice, triggering the lender's right to pursue collection.",{"term":280,"definition":281},"Acceleration","A clause that makes the entire outstanding balance immediately due upon a defined trigger event — such as the borrower's insolvency or breach of the note terms.",{"term":283,"definition":284},"Imputed Interest","Interest the IRS or tax authority deems to have been charged on a below-market or interest-free loan, even if no interest was actually paid, creating a taxable event.",{"term":286,"definition":287},"Guarantor","A third party who agrees to repay the note if the primary borrower fails to do so, providing the lender an additional source of recovery.",{"term":289,"definition":290},"Usury","The practice of charging interest above the maximum rate permitted by law in the applicable jurisdiction, which can render the interest provision — or the entire note — unenforceable.",{"term":292,"definition":293},"Maker","The party who signs a promissory note as the borrower and is legally obligated to repay the amount stated.",{"term":295,"definition":296},"Holder","The party who holds and is entitled to enforce a promissory note — typically the lender or any subsequent assignee.",[298,303,308,313,318,323,328,333,338,343],{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Parties and principal amount","Identifies the lender (holder) and borrower (maker) by full legal name and address, and states the exact principal sum advanced.","FOR VALUE RECEIVED, [BORROWER FULL NAME], of [BORROWER ADDRESS] ('Maker'), promises to pay to [LENDER FULL NAME], of [LENDER ADDRESS] ('Holder'), the principal sum of [AMOUNT IN WORDS] ($[AMOUNT IN FIGURES]).","Using a nickname or trade name instead of the borrower's full legal name. If you need to pursue collection, the note must name the party with legal standing to be sued.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Interest rate and accrual","States the annual interest rate and specifies how interest accrues — typically simple interest on the outstanding principal from the date of advance.","This Note shall bear interest at the rate of [X]% per annum, calculated as simple interest on the outstanding principal balance from the date hereof until repayment in full.","Leaving the interest rate blank or writing 'TBD.' A note with no stated rate is treated as interest-free in most jurisdictions, and tax authorities may impute interest income to the lender regardless.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Demand and repayment mechanics","Establishes that the full principal and accrued interest become due immediately — or within a short defined window — upon the lender's written demand, with no prior notice otherwise required.","The entire outstanding principal balance, together with all accrued and unpaid interest, shall be due and payable ON DEMAND by the Holder. Demand shall be made in writing and delivered to the Maker at the address above.","Not specifying the delivery method for demand notices. A demand delivered by email to an address the borrower no longer monitors can spark a dispute about when the repayment clock started.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Prepayment right","Confirms the borrower's right to repay all or any portion of the principal at any time without penalty, reducing the outstanding balance on which interest accrues.","The Maker may prepay this Note in whole or in part at any time without premium or penalty. Prepayments shall be applied first to accrued interest and then to principal.","Omitting this clause and leaving the prepayment right ambiguous. Some jurisdictions imply a prepayment right; others do not — an explicit clause eliminates the uncertainty.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Default and cure period","Defines what constitutes default — primarily failure to pay following a demand — and grants the borrower a short cure window before the lender may pursue remedies.","Maker shall be in default under this Note if payment in full is not received by Holder within [5] business days of written demand. Upon default, Holder may exercise all rights and remedies available at law or in equity.","Setting no cure period at all. Courts in some jurisdictions expect a reasonable opportunity to cure before a lender can sue, and a zero-day cure window can make the default clause harder to enforce.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Acceleration on insolvency","Makes the full balance automatically due if the borrower becomes insolvent, files for bankruptcy, or has a judgment entered against them — without a separate demand being required.","Notwithstanding the foregoing, the entire outstanding principal and accrued interest shall become immediately due and payable, without demand or notice, upon: (a) Maker's insolvency or general assignment for the benefit of creditors; (b) the filing of any voluntary or involuntary bankruptcy petition; or (c) appointment of a receiver.","Relying solely on the demand mechanic and omitting an automatic acceleration trigger. In an insolvency, waiting to serve a formal demand can put the lender behind secured creditors who act faster.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Costs of collection","Requires the borrower to reimburse the lender for reasonable legal fees and collection costs incurred in enforcing the note after default.","In the event of default, Maker agrees to pay all reasonable costs of collection, including attorney's fees and court costs, incurred by Holder in enforcing this Note.","Using a reciprocal fee-shifting clause that also awards fees to the borrower if they prevail. This increases litigation risk for the lender and is rarely appropriate in a simple promissory note.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Governing law and jurisdiction","Specifies which jurisdiction's law governs the note and where any legal proceedings must be brought, providing certainty when lender and borrower are in different locations.","This Note shall be governed by and construed in accordance with the laws of the State / Province of [JURISDICTION], without regard to conflict-of-laws principles. The parties consent to the exclusive jurisdiction of the courts located in [CITY / COUNTY].","Choosing a governing jurisdiction with no connection to either party. Courts may decline to apply a foreign law that has no reasonable nexus to the transaction, creating unpredictable outcomes.",{"name":339,"plain_english":340,"sample_language":341,"common_mistake":342},"Waiver of presentment and protest","The borrower waives the formal common-law rights to presentment, demand, notice of dishonor, and protest — simplifying the lender's enforcement path.","Maker hereby waives presentment for payment, demand, notice of non-payment, protest, and notice of protest with respect to this Note.","Skipping this clause in states or provinces where these formalities are still legally required for enforcement. Without a waiver, a lender who skips the formal demand ritual may lose the right to collect.",{"name":344,"plain_english":345,"sample_language":346,"common_mistake":347},"Signature block and date","Captures the borrower's signature, printed name, and the date of execution — and optionally a co-signer or guarantor signature — to make the note enforceable.","IN WITNESS WHEREOF, Maker has executed this Demand Note as of [DATE]. Signature: _____________________________ | Printed Name: [BORROWER FULL NAME] | Date: [DATE] | [GUARANTOR SIGNATURE BLOCK IF APPLICABLE]","Dating the note on the disbursement date rather than the actual signing date when those differ. Inconsistent dates create ambiguity about when interest began accruing and can trigger questions about whether consideration was actually exchanged.",[349,354,359,364,369,374,379,384],{"step":350,"title":351,"description":352,"tip":353},1,"Enter full legal names and addresses for both parties","Use the borrower's complete legal name as it appears on government-issued ID or corporate registration documents, and the lender's full name and current address.","For a loan to a corporation, confirm the exact registered entity name — 'Acme Inc.' and 'Acme Incorporated' are legally distinct and can complicate enforcement.",{"step":355,"title":356,"description":357,"tip":358},2,"State the principal amount in both words and figures","Write the loan amount in full words and in numerals — e.g., 'Ten Thousand Dollars ($10,000.00).' Both forms must match exactly.","If they conflict, courts in most jurisdictions treat the written-word version as controlling, which can work for or against you depending on which has the error.",{"step":360,"title":361,"description":362,"tip":363},3,"Set the interest rate and confirm it is below the usury ceiling","Enter the annual rate and verify it does not exceed the maximum legal rate in the governing jurisdiction. For family loans, even a nominal rate (e.g., the applicable federal rate) protects against IRS imputed-interest adjustments.","The IRS publishes the Applicable Federal Rate (AFR) monthly — using at least the short-term AFR on a family loan avoids gift tax complications.",{"step":365,"title":366,"description":367,"tip":368},4,"Define the demand notice method","Specify exactly how a demand must be delivered — registered mail, overnight courier, email with read receipt, or hand delivery — and the address or email to which it must be sent.","Add a provision that demand is effective the next business day after delivery to avoid disputes about whether the borrower actually received it.",{"step":370,"title":371,"description":372,"tip":373},5,"Set the cure period after demand","Decide how many business days the borrower has to pay after a demand is served — typically three to ten business days. Enter this number in the default clause.","A five-business-day cure period is a practical standard that gives the borrower time to arrange a wire transfer while keeping the lender's enforcement timeline short.",{"step":375,"title":376,"description":377,"tip":378},6,"Add a guarantor block if the borrower's credit is uncertain","If the loan carries meaningful default risk, include a separate guarantor signature block and have the guarantor sign on the same date as the borrower.","A guaranty signed after the original note may lack consideration in some jurisdictions — execute everything simultaneously.",{"step":380,"title":381,"description":382,"tip":383},7,"Sign before or on the disbursement date","Both the note date and the disbursement date should match or the note should explain any gap. The borrower signs; the lender retains the original executed copy.","Keep the original signed note in a secure location — you must be able to produce it to enforce collection. A copy is rarely sufficient in court.",{"step":385,"title":386,"description":387,"tip":388},8,"Record the advance and note in your books","Log the loan on the lender's balance sheet as a note receivable and on the borrower's books as a note payable. For owner-shareholder loans, confirm the accounting treatment with your accountant at year-end.","Tax authorities scrutinize owner-to-company advances. A signed demand note with a market interest rate is the strongest evidence the transaction is a loan, not a disguised dividend or capital contribution.",[390,394,398,402],{"mistake":391,"why_it_matters":392,"fix":393},"Setting no interest rate","An interest-free demand note between related parties triggers IRS imputed-interest rules, creating phantom income for the lender even if no interest is paid. In Canada, CRA applies similar attribution rules.","Set the rate at or above the applicable federal rate (AFR in the US) or the CRA prescribed rate in Canada. Even a nominal rate eliminates the imputed-income problem.",{"mistake":395,"why_it_matters":396,"fix":397},"Not specifying the demand notice method","An unspecified delivery method invites disputes about whether a valid demand was ever made, stalling the lender's ability to start the cure period clock and pursue collection.","Name the exact delivery method — registered mail, courier, or email with delivery confirmation — and the address or email to which demand must be sent.",{"mistake":399,"why_it_matters":400,"fix":401},"Skipping the waiver of presentment and protest","Several US states and Canadian provinces still require formal presentment and protest before a promissory note can be enforced. Omitting the waiver forces the lender through procedural steps that can delay or void enforcement.","Include a standard waiver clause in which the maker expressly waives presentment, demand, notice of dishonor, and protest.",{"mistake":403,"why_it_matters":404,"fix":405},"Using a demand note when a fixed-term note is more appropriate","If the borrower needs predictable repayment terms to service the debt, a demand note creates anxiety and relationship risk — especially in family loans. Calling the loan unexpectedly can destroy trust and trigger an inability-to-pay default.","If the borrower needs a predictable schedule, use a standard promissory note with fixed installments. Reserve the demand structure for situations where the lender genuinely needs call flexibility.",[407,410,413,416,419,422,425,428,431],{"question":408,"answer":409},"What is a demand note?","A demand note is a promissory note with no fixed maturity date — the borrower is required to repay the full principal and accrued interest immediately upon the lender's written request. Unlike installment loans, there is no predetermined repayment schedule. Demand notes are commonly used in family loans, shareholder advances, and short-term commercial lending where the lender wants flexibility to call the loan at any time.\n",{"question":411,"answer":412},"What is the difference between a demand note and a promissory note?","All demand notes are promissory notes, but not all promissory notes are demand notes. A standard promissory note has a fixed maturity date and often a structured repayment schedule. A demand note has no maturity date and becomes due only when the lender calls it. Use a demand note when you want lender flexibility; use a fixed-term promissory note when the borrower needs a predictable repayment schedule.\n",{"question":414,"answer":415},"Is a demand note legally enforceable?","A demand note is generally enforceable when it is signed by the borrower, states a definite principal amount and interest rate, and clearly sets out the demand and repayment mechanics. Courts in most jurisdictions treat demand notes as valid negotiable instruments under the Uniform Commercial Code in the US or equivalent legislation elsewhere. Having a lawyer review the document is advisable when the loan amount is significant or the parties are in different jurisdictions.\n",{"question":417,"answer":418},"Does a demand note need to be notarized?","Notarization is not required for a demand note to be enforceable in most US states, Canadian provinces, or UK jurisdictions. A witnessed signature by the borrower is typically sufficient. However, notarization adds an extra layer of authentication that can simplify enforcement if the borrower later disputes their signature.\n",{"question":420,"answer":421},"What interest rate should I use on a demand note?","For arm's-length commercial loans, the rate should reflect prevailing market rates for comparable short-term credit. For family loans or related-party advances, use at least the IRS Applicable Federal Rate (AFR) — published monthly — to avoid imputed-interest income and potential gift tax consequences. In Canada, the CRA prescribed rate applies to related-party loans. Setting any rate above zero and at or above these minimums protects both parties from unintended tax consequences.\n",{"question":423,"answer":424},"How does the lender make a demand for repayment?","The lender sends a written demand notice to the borrower at the address specified in the note, using the delivery method specified in the document — commonly registered mail, overnight courier, or email with delivery confirmation. The borrower then has the cure period stated in the note (typically three to ten business days) to remit payment in full before the lender can pursue collection remedies.\n",{"question":426,"answer":427},"Can a demand note be used between a company and its shareholder?","Yes — owner-to-company and shareholder-to-company advances are one of the most common uses for demand notes. A signed demand note with a market interest rate is the primary evidence tax authorities use to confirm the advance is a genuine loan rather than a disguised dividend, salary, or capital contribution. Ensure both parties record the note correctly on their balance sheets and that interest is actually paid or accrued in each tax year.\n",{"question":429,"answer":430},"What happens if the borrower cannot repay after a demand?","If the borrower fails to pay within the cure period specified in the note, the lender may pursue all available legal remedies — filing a civil lawsuit to obtain a judgment, garnishing wages or bank accounts, or placing a lien on property. If the note includes a guarantor, the lender can also pursue the guarantor simultaneously. Consulting a lawyer before initiating collection is advisable, particularly if the borrower has initiated insolvency proceedings, which trigger automatic stays in most jurisdictions.\n",{"question":432,"answer":433},"Are there limits on the interest rate I can charge?","Yes — every jurisdiction has usury laws that cap the maximum lawful interest rate on private loans. In the US, limits vary by state and loan type, ranging from roughly 6% to 45% per annum depending on the jurisdiction and borrower type. In Canada, the Criminal Code caps interest at an effective annual rate of 60%. In the UK, there is no statutory cap for most commercial loans, but the Financial Conduct Authority regulates consumer credit rates. Exceeding the applicable limit can void the interest clause or the entire note.\n",[435,439,443,447],{"industry":436,"icon_asset_id":437,"specifics":438},"Family and personal lending","industry-personal-finance","Demand notes formalize loans between relatives or friends, establishing a paper trail that satisfies tax authorities and avoids gift reclassification.",{"industry":440,"icon_asset_id":441,"specifics":442},"Professional services","industry-professional-services","Accounting and law firms use demand notes to document principal advances to partnerships or to record partner capital loans that are repayable on firm request.",{"industry":444,"icon_asset_id":445,"specifics":446},"Real estate","industry-real-estate","Private real estate investors use demand notes for bridge financing between property acquisition and long-term mortgage placement, where repayment timing is unpredictable.",{"industry":448,"icon_asset_id":449,"specifics":450},"Technology / SaaS","industry-saas","Startup founders use demand notes to document shareholder bridge advances made before a priced equity round closes, keeping the capital structure clean for due diligence.",[452,455,458,461],{"vs":92,"vs_template_id":453,"summary":454},"promissory-note-D12768","A standard promissory note has a fixed maturity date and typically a structured repayment schedule — the borrower knows exactly when each payment is due. A demand note has no maturity date and is callable at any time. Use a fixed-term promissory note when the borrower needs predictable obligations; use a demand note when the lender needs maximum flexibility.",{"vs":110,"vs_template_id":456,"summary":457},"loan-agreement-D13178","A loan agreement is a more comprehensive bilateral contract that governs the entire lending relationship — covenants, representations, conditions precedent, and ongoing reporting obligations. A demand note is a single instrument signed only by the borrower, simpler and faster to execute. Use a loan agreement for larger or more complex facilities; use a demand note for straightforward advances where simplicity matters.",{"vs":252,"vs_template_id":459,"summary":460},"line-of-credit-agreement-D12767","A line of credit agreement lets the borrower draw, repay, and redraw funds up to a maximum limit repeatedly over time. A demand note documents a single fixed advance that is repayable on demand. Use a line of credit when the borrower has recurring, variable funding needs; use a demand note for a one-time lump-sum advance.",{"vs":139,"vs_template_id":462,"summary":463},"convertible-note-agreement-D13206","A convertible note is a debt instrument that automatically converts to equity at a future financing event — it is designed to eventually become ownership, not cash repayment. A demand note is pure debt with no conversion feature. Use a convertible note for startup bridge financing intended to become equity; use a demand note when the lender expects cash repayment.",{"use_template":465,"template_plus_review":469,"custom_drafted":473},{"best_for":466,"cost":467,"time":468},"Family loans, small owner-shareholder advances under $50,000, and straightforward short-term commercial demand notes between parties in the same jurisdiction","Free","15–30 minutes",{"best_for":470,"cost":471,"time":472},"Loans above $50,000, cross-border advances, or situations where the tax treatment of interest is uncertain","$200–$500","1–2 days",{"best_for":474,"cost":475,"time":476},"Large commercial demand facilities, loans with guarantors and collateral, or intragroup advances in regulated industries","$800–$3,000+","3–7 days",[478,483,488,493],{"code":479,"name":480,"flag_asset_id":481,"note":482},"us","United States","flag-us","Demand notes are governed by Article 3 of the Uniform Commercial Code, adopted in all 50 states. Usury limits vary significantly by state — some states impose no cap on business loans while others cap consumer loans at 6–16% per annum. For related-party loans, the IRS Applicable Federal Rate (AFR) sets the minimum interest rate to avoid imputed-income and gift tax consequences. California, New York, and Texas each have specific usury carve-outs for certain commercial lenders.",{"code":484,"name":485,"flag_asset_id":486,"note":487},"ca","Canada","flag-ca","Demand notes are valid across all provinces under common law and the Bills of Exchange Act. The Criminal Code caps the effective annual interest rate at 60% for all loans. For shareholder or related-party demand loans, CRA requires interest to be paid or accrued at the prescribed rate by January 30 of the following year to avoid income attribution. Quebec civil law governs loans made entirely within Quebec and may impose additional formality requirements.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"uk","United Kingdom","flag-uk","Demand notes are enforceable under the Bills of Exchange Act 1882 and general contract law. There is no statutory interest cap for most commercial loans, but the Consumer Credit Act 1974 applies to loans to individuals up to £25,000 and imposes unfair credit relationship protections. For loans between connected parties, HMRC may challenge the interest rate under transfer pricing or thin capitalisation rules if the borrower is a company.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"eu","European Union","flag-eu","Demand note enforceability is governed by member state law — there is no single EU promissory note statute. Consumer lending is subject to the Consumer Credit Directive, which imposes disclosure requirements and interest rate oversight in most member states. For commercial loans between related entities, transfer pricing rules under OECD guidelines (implemented by most member states) require interest to be set at arm's-length rates. GDPR applies to any personal data included in or processed in connection with the note.",[237,245,253,260,499,241,500,501,502,237,503,504],"personal-guarantee-D405","payment-plan-agreement-D12663","security-agreement-D915","adhesion-to-the-unanimous-shareholder-agreement-D848","general-release-and-settlement-agreement-D12554","letter-of-intent_acquisition-of-business-D5197",{"emit_how_to":202,"emit_defined_term":202},{"primary_folder":133,"secondary_folder":507,"document_type":508,"industry":509,"business_stage":510,"tags":511,"confidence":517},"loans-and-promissory-notes","agreement","general","all-stages",[512,513,514,515,516],"loan","legal","demand-note","promissory-note","lending",0.95,"\u003Ch2>What is a Demand Note?\u003C/h2>\n\u003Cp>A \u003Cstrong>Demand Note\u003C/strong> is a legally binding promissory note signed by a borrower that obligates repayment of the full principal and all accrued interest immediately upon the lender's written request — with no fixed maturity date and no predetermined repayment schedule. Unlike a standard installment loan, the debt does not come due on a calendar date; it comes due the moment the holder asks for it. Demand notes function as negotiable instruments under the Uniform Commercial Code in the United States and under equivalent bills-of-exchange legislation in Canada, the UK, and most other common-law jurisdictions, meaning they can be transferred to a third party who then holds the right to demand repayment.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Lending money without a signed demand note — even to a family member or to your own company — creates serious legal and tax exposure. Without a written instrument, tax authorities may reclassify the advance as a taxable gift or a disguised dividend, triggering income tax or gift tax consequences for both parties. In an insolvency, an undocumented advance ranks behind even unsecured creditors who hold written instruments. A signed demand note with a documented interest rate also gives the lender a clear enforcement path: serve a written demand, wait out the cure period, then pursue judgment — no ambiguity about terms, no he-said-she-said dispute about the original intent. This template gives you a professionally structured, jurisdiction-aware demand note you can complete in under 30 minutes and rely on if the relationship ever turns adversarial.\u003C/p>\n",1781186016069]