[{"data":1,"prerenderedAt":521},["ShallowReactive",2],{"document-installment-note-bank-deposit-as-collateral-D430":3},{"document":4,"label":26,"preview":11,"thumb":27,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":28,"breadcrumb":32,"related":40,"customDescModule":182,"customdescription":6,"mdFm":183,"mdProseHtml":520},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":25},"INSTALLMENT NOTE - BANK DEPOSIT AS COLLATERAL This Installment Note With Bank Deposit as Collateral (the \"Note\") is made and effective the [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Maker\"), 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: [INSTITUTION NAME] (the \"Institution\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] TERMS OF NOTE For value received, Maker promises to pay to the order of Financial Institution the principal sum of [AMOUNT] with interest thereon at [%] per year in installment as follows: [NUMBER] monthly installments of [AMOUNT] each, beginning on [DATE], and on the same date of each month thereafter, ending on [DATE]. BANK DEPOSIT COLLATERAL Maker shall furnish collateral security for the indebtedness evidenced by this note by depositing with Institution on [DATE], [AMOUNT] for credit to the loan account number, in this note referred to as loan account, and an equal amount is to be deposited at regular [monthly] intervals thereafter, until the total sum equal to the face amount of this note is deposited. DEFAULT IN DEPOSITS If Maker fails to deposit money as agreed in Section 2, Maker shall pay to Institution, as liquidated damages, [cents] for each dollar not deposited. PERSONAL LOAN ACCOUNT AS PAYMENT OF NOTE When this note matures, by acceleration or any other manner, Institution may apply the amount on deposit in the personal loan account against the amount owing on this note. However, Maker shall still be liable for any indebtedness represented by this note that remains unpaid after this application. SECURITY INTEREST IN OTHER PROPERTY IN POSSESSION OF INSTITUTION As security for the payment of this note and for the payment of all other debt of Maker to Institution, including debt of every kind and description, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and regardless of how the debt is evidenced, Maker grants to bank a continuing lien on all instruments, documents of title, policies of insurance, deposits, moneys, or any other property now or hereafter owned by Maker now or hereafter in the possession or under the control of Institution. ACCELERATION ON DEFAULT",null,"Installment Note Bank Deposit as Collateral","3",37,"doc","https://templates.business-in-a-box.com/imgs/1000px/installment-note_bank-deposit-as-collateral-D430.png","https://templates.business-in-a-box.com/imgs/250px/430.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#430.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/","installment note bank deposit as collateral","Installment Note Bank Deposit as Collateral Template","https://templates.business-in-a-box.com/imgs/400px/430.png",[29,16,19,22],{"label":30,"url":31},"Templates","/templates/",[33,34,37],{"label":30,"url":31},{"label":35,"url":36},"Legal Agreements","/templates/business-legal-agreements/",{"label":38,"url":39},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[41,45,49,53,57,61,65,69,73,77,81,85,89,107,122,138,153,167],{"label":42,"url":43,"thumb":44,"extension":10},"Secured Installment Note","/template/secured-installment-note-D440","https://templates.business-in-a-box.com/imgs/250px/440.png",{"label":46,"url":47,"thumb":48,"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":50,"url":51,"thumb":52,"extension":10},"Request Bank to Stop-Payment","/template/request-bank-to-stop-payment-D293","https://templates.business-in-a-box.com/imgs/250px/293.png",{"label":54,"url":55,"thumb":56,"extension":10},"Notice to Bank to Stop Payment on Check","/template/notice-to-bank-to-stop-payment-on-check-D453","https://templates.business-in-a-box.com/imgs/250px/453.png",{"label":58,"url":59,"thumb":60,"extension":10},"Collateral Agreement","/template/collateral-agreement-D13257","https://templates.business-in-a-box.com/imgs/250px/13257.png",{"label":62,"url":63,"thumb":64,"extension":10},"Collateral Debenture","/template/collateral-debenture-D463","https://templates.business-in-a-box.com/imgs/250px/463.png",{"label":66,"url":67,"thumb":68,"extension":10},"Notice of Private Sale of Collateral","/template/notice-of-private-sale-of-collateral-D402","https://templates.business-in-a-box.com/imgs/250px/402.png",{"label":70,"url":71,"thumb":72,"extension":10},"Notice of Public Sale of Collateral","/template/notice-of-public-sale-of-collateral-D403","https://templates.business-in-a-box.com/imgs/250px/403.png",{"label":74,"url":75,"thumb":76,"extension":10},"Demand by Secured Party for Possession of Collateral","/template/demand-by-secured-party-for-possession-of-collateral-D397","https://templates.business-in-a-box.com/imgs/250px/397.png",{"label":78,"url":79,"thumb":80,"extension":10},"Direct Deposit Enrollment Form","/template/direct-deposit-enrollment-form-D672","https://templates.business-in-a-box.com/imgs/250px/672.png",{"label":82,"url":83,"thumb":84,"extension":10},"Receipt for Lease Security Deposit","/template/receipt-for-lease-security-deposit-D1199","https://templates.business-in-a-box.com/imgs/250px/1199.png",{"label":86,"url":87,"thumb":88,"extension":10},"Request to Bank for Extension of Time","/template/request-to-bank-for-extension-of-time-D459","https://templates.business-in-a-box.com/imgs/250px/459.png",{"description":90,"descriptionCustom":6,"label":91,"pages":92,"size":93,"extension":10,"preview":94,"thumb":95,"svgFrame":96,"seoMetadata":97,"parents":99,"keywords":98,"url":106},"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",513,"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":98,"description":6},"secured lumpsum promissory note agreement",[100,103],{"label":101,"url":102},"Business Plan Kit","business-plan-kit",{"label":104,"url":105},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",{"description":108,"descriptionCustom":6,"label":109,"pages":110,"size":93,"extension":10,"preview":111,"thumb":112,"svgFrame":113,"seoMetadata":114,"parents":116,"keywords":115,"url":121},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Demand to Pay Promissory Note Dear [Contact name], This is to notify you that payment is past due under your Promissory Note (the \"Note\") dated [DATE]. The following payments have not been received: Payment Due Date Amount of Principal Due Amount of Interest Due Late Charge Thus, as of the date of this letter, you are in arrears in the total amount of [Amount OF arrears].","Demand to Pay Promissory Note","1","https://templates.business-in-a-box.com/imgs/1000px/demand-to-pay-promissory-note-D207.png","https://templates.business-in-a-box.com/imgs/250px/207.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#207.xml",{"title":115,"description":6},"demand to pay promissory note",[117,120],{"label":118,"url":119},"Credit & Collection","credit-collection",{"label":118,"url":119},"/template/demand-to-pay-promissory-note-D207",{"description":123,"descriptionCustom":6,"label":124,"pages":125,"size":93,"extension":10,"preview":126,"thumb":127,"svgFrame":128,"seoMetadata":129,"parents":131,"keywords":130,"url":137},"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","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":130,"description":6},"loan agreement",[132,134,136],{"label":17,"url":133},"finance-accounting",{"label":20,"url":135},"business-loan",{"label":20,"url":135},"/template/loan-agreement-D417",{"description":139,"descriptionCustom":6,"label":140,"pages":110,"size":141,"extension":10,"preview":142,"thumb":143,"svgFrame":144,"seoMetadata":145,"parents":146,"keywords":151,"url":152},"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.","Demand Note",28,"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},[147,148,149],{"label":17,"url":133},{"label":20,"url":135},{"label":23,"url":150},"promisory-note","promissory note","/template/promissory-note-D429",{"description":154,"descriptionCustom":6,"label":155,"pages":92,"size":156,"extension":10,"preview":157,"thumb":158,"svgFrame":159,"seoMetadata":160,"parents":161,"keywords":165,"url":166},"PLEDGE AGREEMENT This Pledge Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"First Party\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Undersigned\"), an individual with his main address located at: [COMPLETE ADDRESS] For good and valuable consideration, the receipt and legal sufficiency of which are hereby expressly acknowledged, the parties hereto agree as follows: WHEREAS the First Party advanced the sum of [AMOUNT] for the purposes of a project located in the City of [NAME OF THE CITY], Province of [STATE/PROVINCE], known and designated as being lot numbers [NUMBER], [NUMBER], [NUMBER] and [NUMBER] on the official plan and book of reference of the [SPECIFY] [STATE/PROVINCE], with the buildings thereon erected bearing civic number [NUMBER] to [NUMBER], [NUMBER] to [NUMBER] and [NUMBER] and [NUMBER] [FULL ADDRESS], [STATE/PROVINCE]; WHEREAS the [SPECIFY] Project is owned in co-ownership by [COMPANY NAME], the Undersigned, [INDIVIDUAL NAME], [INDIVIDUAL NAME], [INDIVIDUAL NAME], [INDIVIDUAL NAME], [INDIVIDUAL NAME], [COMPANY NAME], and [COMPANY NAME] as co-owners and [COMPANY NAME] as agent, pursuant to a Memorandum of Agreement made and entered into by and between them at [STATE/PROVINCE], [STATE/PROVINCE] on [DATE]; WHEREAS the Undersigned owns a [PERCENTAGE %] percent undivided interest in the [SPECIFY] Project, and [PERCENTAGE %] percent of the said advance or the sum of [AMOUNT] (the \"Advance\") was accordingly made for and on behalf of the Undersigned; WHEREAS the Undersigned and The First Party entered into a partnership agreement dated as of [DATE] confirming that a certain immoveable property situated at the northeast corner of [NAME OF THE STREET] and [NAME OF THE STREET], in the City of [NAME OF THE CITY], Province of [STATE/PROVINCE], composed of lots [NUMBER]-Pt. [NUMBER], [NUMBER]-Pt. [NUMBER], [NUMBER]-Pt. [NUMBER] and [NUMBER]-Pt. [NUMBER], with the buildings thereon erected bearing civic numbers [NUMBER] to [NUMBER] of said [NAME OF THE STREET] in [STATE/PROVINCE] (the \"Partnership Property\"), was owned by them in partnership and not indivision, said partnership to be known as [AMOUNT] [NAME] Reg'd.\" (the \"Partnership\"), and providing for, inter alia, the operations of the Partnership, naming the Undersigned as the managing partner of the Partnership, and providing for his powers as such, as well as for the dissolution of the Partnership and the sale of the Partnership Property (the \"Partnership Agreement\"); WHEREAS [COMPANY NAME] transferred his interest in the Partnership to [COMPANY NAME] as of [EFFECTIVE DATE]; WHEREAS the Undersigned and [COMPANY NAME] filed a Partnership Declaration at the Office of the Prothonotary for the judicial district of [NAME OF THE CITY] on [EFFECTIVE DATE] under the number [NUMBER]; NOW THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, receipt whereof is hereby acknowledged, the Undersigned pledges to First Party all right, title and interest (the \"Partnership Interest\") of the Undersigned in and to the Partnership, to be held by First Party together with all renewals thereof, substitutions therefore, accretions thereto, and all income therefrom as general and continuing collateral security and as a pledge for the fulfillment of all obligations, present and future, direct and indirect, absolute and contingent, presently due and hereafter due to First Party by the Undersigned including, without limiting the generality of the foregoing: (i) the obligation to repay (in capital, interest and accessories and upon the terms and conditions provided for thereunder) the Advance as well as all present and future advances or loans made by First Party to the Undersigned, and (ii) all other obligations or liabilities of the Undersigned to First Party, in both cases together with interest thereon at the prime rate of the [SPECIFY BANK] [COUNTRY] plus [PERCENTAGE %] percent per annum (hereinafter collectively referred to as the \"Obligations\"), whether the Obligations arise from agreements or dealings between First Party and the Undersigned or from agreements or dealings with any third person by which First Party may be or become in any manner whatsoever a creditor of the Undersigned or however otherwise arising and whether the Undersigned be bound alone or with another or others and whether as principal or surety. In the event the Undersigned fails to fulfill any of the Obligations, including a default under the Loan or to repay any advances or loans made by First Party to the Undersigned, or the interest thereon, or any part of such advances, loans or interest, when due, or when an instrument evidencing such indebtedness matures or upon default to make any payment when requested (\"Event of Default\"), First Party may, without advertisement or notice to the Undersigned or others and without demand for payment or formality whatsoever, the Undersigned hereby renouncing to such advertisement, notices, demands for payment, formalities or other requirements of [YOUR COUNTRY LAW], sell the Partnership Interest, at public or private sale, or otherwise dispose of the Partnership Interest for such price and upon such terms and conditions as it deems best. All income from the Partnership Interest and the proceeds of any sale or realization thereof, after deduction of all expenses thereof, with interest on such expenses at the rate then borne by the advances or loans by First party to the Undersigned, may be held by First Party as security as aforesaid, and, when First Party deems it desirable so to do, from time to time, may be applied against any of the Obligations as First Party deems best. First Party shall not be bound to realize on the Partnership Interest nor to permit the alienation of same and it shall not be responsible for any loss resulting from the sale of the Partnership Interest, the retention thereof or refusal to sell, dispose of or realize upon the same; nor shall First Party be required to collect or receive the interest or dividends thereon nor to demand payment thereof. In the event that the Undersigned should receive any payment of any nature whatsoever on account of the Partnership Interest, all sums thus received shall be immediately paid to First Party and the default of the Undersigned to do so shall constitute an Event of Default under the provisions hereof. First Party or any officer of First Party is hereby constituted the irrevocable attorney of the Undersigned, with power to delegate and sub-delegate, for the purpose of transferring the Partnership Interest and First Party may execute any transfer or any power of attorney and generally all documents required to complete the transfer and alienation of the Partnership Interest","Pledge Agreement Advance",52,"https://templates.business-in-a-box.com/imgs/1000px/pledge-agreement_advance-D903.png","https://templates.business-in-a-box.com/imgs/250px/903.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#903.xml",{"title":6,"description":6},[162,164],{"label":35,"url":163},"business-legal-agreements",{"label":35,"url":163},"pledge agreement advance","/template/pledge-agreement-advance-D903",{"description":168,"descriptionCustom":6,"label":169,"pages":170,"size":171,"extension":10,"preview":172,"thumb":173,"svgFrame":174,"seoMetadata":175,"parents":176,"keywords":180,"url":181},"CREDIT AGREEMENT This Credit Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Borrower\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BANK NAME] (the \"Lender\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Borrower wishes to borrow certain monies from the Lender, and the Lender is prepared to lend monies to the Borrower on the terms and conditions herein contained. NOW, THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS: 1. INTERPRETATION 1.1 Definitions The following words and expressions, wherever used in this Agreement or in its Schedules, or in any deed of agreement supplement or ancillary hereto, unless there be something in the subject or the context inconsistent therewith, shall have the following meanings: 1.1.1 \"Advance\" means any advance by the Lender under the Term Commitment or under the Operating Commitment; 1.1.2 \"Affiliate\" means any Person, which is directly, or indirectly controlling, is controlled by, or is under direct or indirect common control with the Borrower. A Person shall be deemed to control a corporation or a limited partnership if such person possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such corporation, limited partnership or general partner of such limited partnership, as the case may be, whether through the ownership of voting securities, by contract, or otherwise; 1.1.3 \"Agreement\", \"this Agreement\", \"these presents\", \"herein\", \"hereby\", \"hereunder\", and similar expressions refer to the present Agreement and any accompanying Schedules and include any and every deed of instrument which is supplementary or ancillary hereto or in implementation hereof, the whole as same may be amended from time to time; 1.1.4 \"Available Operating Commitment\" means, as at any time, as determined by the Lender, the difference between: 1.1.4.1 an amount being the lesser of: 1.1.4.1.1 the Operating Commitment; or 1.1.4.1.2 an amount equal to: 1.1.4.1.2.1 [%] of the book value of such of the Borrower's trade accounts receivable and book debts which are acceptable to the Lender acting reasonably and are outstanding for less than [NUMBER] days, other than accounts receivable and book debts which are being disputed by the debtors thereof or which are owed by any Affiliate of the Borrower; plus 1.1.4.1.2.2 the lesser of [AMOUNT] or [%] of the book value of the Borrower's Inventory, other than Inventory consisting of work-in-process and Inventory located outside of [COUNTRY]; and 1.1.4.2 the Operating Loan. 1.1.5 \"Bank Act Documents\" is the collective reference to: the Notice of Intention to Give Security; the Application for Credit and Promise to Give Security; the Agreement as to Powers of the Lender in relation to all Advances and Securities Held Therefore and the Assignment of Security on all Property of Specified Kinds, all in the form required by the Lender; 1.1.6 \"[COMPANY NAME]\" means [COMPANY NAME]; 1.1.7 \"Company Lease\" means the lease between the Borrower and [COMPANY NAME] wherein certain equipment which was purchased from or on behalf of the Borrower for [AMOUNT] has been leased to the Borrower by [AMOUNT] for a term of [NUMBER] years; 1.1.8 \"Bond\" means the [%] collateral mortgage bond issued pursuant to the Trust Deed and pledged to the Lender pursuant to the Pledge Agreement; 1.1.9 \"Borrower\" refers to [NAME] 1.1.10 \"Borrower's Counsel\" refers to [EMPLOYEE], [EMPLOYEE]; \"Business Day\" means any day excluding Saturday, Sunday and any other day which, in [COUNTRY], is a legal holiday or a day on which banking institutions are authorized by [COUNTRY] law or by local proclamation to close; \"Equipment Lease\" means the lease between the Borrower and [COMPANY] wherein certain equipment which was purchased from or on behalf of the Borrower for [AMOUNT] has been leased to the Borrower by CID for a term of [NUMBER] years; \"Commercial Pledge Agreement\" refers to the commercial pledge agreement referred to in subsection 7.1.8 and as the same may be amended or supplemented from time to time; \"Default\" means any of the events specified in Section 13.1, the occurrence or failure to cure of which constitutes, or with the passage of time or giving of notice or both, would constitute an Event of Default; \"Event of Default\" has the meaning ascribed to it in Section 13.1; \"Guarantee\" means each of the agreements referred to subsection 7.1.9; \"Guarantor\" refers to [GUARANTOR] \"Indebtedness\" includes, for any Person: obligations for borrowed money; obligations representing the deferred purchase price of property or services; obligations, whether or not assumed, secured by Liens in or payable out of the proceeds or production from, property owned by such Person; lease obligations which would be shown as a liability on a balance sheet of such Person; and obligations of another Person of the types set forth above which such Person has guaranteed (except by reason of endorsement for collection in the ordinary course of business) or in respect of which such Person is liable, contingently or otherwise including, without limitation, liable by way of agreement to purchase property or services, to provide funds for payment, to supply funds to or otherwise invest in such other Person, or otherwise to assure a creditor of such other Person against loss; \"Insurance\" is the collective reference to any and all present and future policies of insurance providing the Borrower coverage for its properties, assets and business; \"Inventory\" means the goods, wares, materials and supplies, merchandise, products, products in process, stock-in-trade and on hand described or referred to in the Assignment of Security in all Property of Specified Kinds forming part of the Bank Act Documents; \"[YOUR COUNTRY] Law\" means all applicable provisions of statutes, ordinances, decrees, orders in council, rules, regulations and orders of governmental bodies, treaties and all applicable orders and decrees of courts; \"Lender\" means [COMPANY NAME] and includes any successors or assigns thereof; \"Lien\" means any interest in property or the income or profits therefrom securing an obligation owed to, or claimed by, a Person other than the owner (which for the purposes hereof shall include a possessor under a title retention agreement and a lessee under a lease herein below described) of such property, whether such interest is based on common law, civil [COMPANY NAME], statute or contract, and including, but not limited to, any secured interest, hypothec, mortgage, pledge, lien, claim, charge, cession, transfer, assignment, encumbrance, title retention agreement, lessor's interest under a lease which would be capitalized on a balance sheet of the owner of such property or analogous instrument in, of, or on any property or the income or profits therefrom of a Person, other than Permitted Encumbrances and Liens included in the ordinary course of business and for the purpose of carrying on same not in connection with the borrowing of money or the obtaining of credit and which do not in the aggregate materially impair the use, the income or profits therefrom, of the property covered thereby in the operation of such Person's business; \"Loan\" means, as at any time, the aggregate of the outstanding amount of any monies advanced by the Lender to, or to the order of, the Borrower pursuant to this Agreement plus any other amounts of principal, interest and accessories due and payable to the Lender hereunder by the Borrower; \"Obligations\" has the meaning ascribed to it in Section 7.1; \"Operating Commitment\" has the meaning ascribed to it in Section 2.1;","Credit Agreement","21",143,"https://templates.business-in-a-box.com/imgs/1000px/credit-agreement-D416.png","https://templates.business-in-a-box.com/imgs/250px/416.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#416.xml",{"title":6,"description":6},[177,178,179],{"label":17,"url":133},{"label":20,"url":135},{"label":20,"url":135},"credit agreement","/template/credit-agreement-D416",false,{"seo":184,"reviewer":194,"quick_facts":198,"at_a_glance":201,"personas":205,"variants":230,"glossary":258,"clauses":295,"how_to_fill":345,"common_mistakes":381,"faqs":406,"industries":434,"comparisons":451,"diy_vs_lawyer":467,"jurisdictions":480,"related_template_ids_curated":501,"schema":507,"classification":508},{"meta_title":185,"meta_description":186,"primary_keyword":25,"secondary_keywords":187},"Installment Note Bank Deposit As Collateral Template | BIB","Free installment note with bank deposit as collateral template. Covers repayment schedule, interest rate, deposit pledge, default, and remedies.",[188,189,190,191,192,193],"installment note template","promissory note bank deposit collateral","installment loan agreement collateral","bank deposit pledge agreement","secured promissory note template word","installment note with collateral free download",{"name":195,"credential":196,"reviewed_date":197},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":199,"legal_review_recommended":200,"signature_required":200},"advanced",true,{"what_it_is":202,"when_you_need_it":203,"whats_inside":204},"An Installment Note Bank Deposit As Collateral is a legally binding promissory note in which a borrower promises to repay a loan in regular scheduled installments and pledges a bank deposit account as security for that obligation. This free Word download gives you a professionally structured template covering principal, interest, repayment schedule, collateral pledge, default triggers, and lender remedies — ready to edit online and export as PDF for execution.\n","Use it when a lender requires a borrower to back a loan with a pledged bank deposit — such as a certificate of deposit or savings account — and both parties need a single enforceable document that governs both the repayment obligation and the collateral arrangement. It is commonly used in private business loans, intra-company financing, and shareholder lending scenarios where liquid deposit assets serve as the security instrument.\n","Parties and loan amount, installment repayment schedule with interest rate, identification and pledge of the bank deposit as collateral, lender's right to apply the deposit on default, prepayment terms, representations and warranties, events of default, acceleration clause, and governing law.\n",[206,210,214,218,222,226],{"title":207,"use_case":208,"icon_asset_id":209},"Private lenders","Formalizing a secured personal or business loan backed by the borrower's deposit account","persona-lender",{"title":211,"use_case":212,"icon_asset_id":213},"Small business owners","Borrowing from a partner or investor using a CD or savings account as pledged security","persona-small-business-owner",{"title":215,"use_case":216,"icon_asset_id":217},"Corporate treasury teams","Structuring intra-company installment loans secured by intercompany deposit holdings","persona-cfo",{"title":219,"use_case":220,"icon_asset_id":221},"Startup founders","Securing bridge financing from an angel investor with a deposit pledge instead of equity dilution","persona-startup-founder",{"title":223,"use_case":224,"icon_asset_id":225},"Real estate investors","Using a pledged escrow or deposit account to collateralize acquisition or renovation financing","persona-real-estate-investor",{"title":227,"use_case":228,"icon_asset_id":229},"Family office advisors","Documenting intra-family or shareholder loans with deposit-backed security for tax and estate planning purposes","persona-family-office",[231,235,239,242,246,250,254],{"situation":232,"recommended_template":233,"slug":234},"Lump-sum repayment at maturity instead of installments","Balloon Payment Promissory Note","demand-for-payment-on-installment-promissory-note-D428",{"situation":236,"recommended_template":237,"slug":238},"Loan secured by real property rather than a bank deposit","Mortgage Promissory Note","promissory-note-D434",{"situation":240,"recommended_template":241,"slug":234},"Unsecured installment loan with no collateral pledge","Installment Promissory Note",{"situation":243,"recommended_template":244,"slug":245},"Loan secured by personal property or equipment rather than a deposit","Secured Promissory Note","secured-lumpsum-promissory-note-agreement-D13041",{"situation":247,"recommended_template":248,"slug":249},"Short-term loan repaid in a single payment with no installments","Demand Promissory Note","demand-to-pay-promissory-note-D207",{"situation":251,"recommended_template":252,"slug":253},"Loan between related parties requiring IRS-compliant interest terms","Intra-Family Loan Agreement","loan-agreement-D417",{"situation":255,"recommended_template":256,"slug":257},"Line of credit secured by a deposit account rather than a fixed loan amount","Business Line of Credit Agreement","line-of-credit-agreement-D14003",[259,262,265,268,271,274,277,280,283,286,289,292],{"term":260,"definition":261},"Installment Note","A promissory note requiring the borrower to repay the loan in a series of scheduled periodic payments rather than a single lump sum at maturity.",{"term":263,"definition":264},"Collateral","An asset pledged by the borrower to the lender as security for repayment; the lender may seize and apply the asset if the borrower defaults.",{"term":266,"definition":267},"Pledge","The act of delivering or assigning an asset — such as a bank deposit account — to a lender as security without transferring title until default occurs.",{"term":269,"definition":270},"Certificate of Deposit (CD)","A time-deposit instrument issued by a bank paying a fixed interest rate for a defined term; commonly used as collateral because its value is certain and liquid.",{"term":272,"definition":273},"Security Interest","A lender's legal right in the borrower's collateral that allows the lender to take possession or apply proceeds of the asset upon default, governed in the US by Article 9 of the UCC.",{"term":275,"definition":276},"Acceleration Clause","A provision that makes the entire unpaid loan balance immediately due and payable upon the occurrence of a defined default event.",{"term":278,"definition":279},"Default","A borrower's failure to perform a material obligation under the note — such as missing a payment, breaching a representation, or becoming insolvent — that triggers the lender's remedies.",{"term":281,"definition":282},"Amortization Schedule","A table showing the breakdown of each installment payment into principal reduction and interest, and the remaining balance after each payment.",{"term":284,"definition":285},"Setoff Right","A lender's contractual or statutory right to apply funds held in a deposit account directly against an outstanding debt owed by the account holder.",{"term":287,"definition":288},"Prepayment","The borrower's optional or mandatory early repayment of principal before the scheduled due date, which may or may not trigger a prepayment penalty depending on the note terms.",{"term":290,"definition":291},"Perfection","The legal process — typically by filing a UCC-1 financing statement or taking control of the deposit account — by which a lender makes its security interest enforceable against third parties.",{"term":293,"definition":294},"UCC-1 Financing Statement","A public filing with the relevant state authority that gives notice of a lender's security interest in collateral, establishing priority over later creditors.",[296,301,306,311,316,321,326,331,335,340],{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Parties, Loan Amount, and Recitals","Identifies the lender and borrower as legal entities, states the principal loan amount, and records the date and purpose of the loan.","This Installment Note is entered into as of [DATE] by and between [LENDER LEGAL NAME] ('Lender') and [BORROWER LEGAL NAME] ('Borrower'). For value received, Borrower promises to pay to the order of Lender the principal sum of $[AMOUNT] (the 'Loan'), together with interest as set forth herein.","Using trade names instead of registered legal entity names. If the lender's name on the note does not match the account holder on record at the pledged bank, perfecting the security interest becomes procedurally complicated.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Interest Rate","States the annual interest rate applied to the outstanding principal, whether it is fixed or variable, and how interest accrues — typically on a 365-day or 360-day basis.","The outstanding principal balance shall accrue interest at a rate of [X]% per annum, calculated on the basis of a 365-day year, from the date hereof until paid in full.","Failing to specify the day-count convention. '6% per annum' is ambiguous — courts and parties calculate different amounts depending on whether they use a 360- or 365-day year, which compounds materially over multi-year loans.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"Repayment Schedule and Installments","Sets the payment amount, frequency (monthly, quarterly, etc.), first payment date, and final maturity date, and specifies how each payment is applied to interest first and then principal.","Borrower shall repay the Loan in [NUMBER] consecutive monthly installments of $[AMOUNT] each, commencing on [FIRST PAYMENT DATE] and continuing on the [DAY] of each month thereafter until [MATURITY DATE], on which date all remaining principal and accrued interest shall be due and payable in full.","Omitting an amortization schedule as an exhibit. A verbal description of the payment amount is insufficient when interest compounds and balances change — attach a full schedule to eliminate disputes over what is owed at any point.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Pledge of Bank Deposit as Collateral","Identifies the specific bank deposit account or certificate of deposit being pledged, grants the lender a security interest in it, and requires the borrower to maintain the deposit in good standing throughout the loan term.","To secure the full and punctual payment of all amounts due hereunder, Borrower hereby pledges, assigns, and grants to Lender a first-priority security interest in the deposit account held at [BANK NAME], Account No. [ACCOUNT NUMBER] (the 'Pledged Deposit'), and agrees to maintain such account in a balance of not less than $[MINIMUM BALANCE] at all times during the term of this Note.","Pledging the deposit account without specifying a minimum balance requirement. If the borrower is free to draw down the account, the collateral may be worth less than the outstanding loan balance by the time a default occurs.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Control Agreement and Perfection","Requires the lender to enter into a deposit account control agreement (DACA) with the depository bank to perfect its security interest and establish priority over competing creditors.","Borrower shall, concurrently with execution of this Note, cause [BANK NAME] to execute a Deposit Account Control Agreement in form acceptable to Lender, granting Lender control over the Pledged Deposit for purposes of perfecting Lender's security interest under Article 9 of the Uniform Commercial Code.","Skipping the control agreement and relying only on a UCC-1 filing for a deposit account. Under UCC Article 9, a lender's security interest in a deposit account can only be perfected by control — a financing statement alone is insufficient and leaves the lender unsecured against third-party creditors.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Events of Default","Lists the specific actions or omissions that constitute a default, including missed payments, breach of covenants, insolvency, and unauthorized withdrawal from the pledged account.","Each of the following constitutes an Event of Default: (a) Borrower fails to make any installment payment within [X] days of its due date; (b) Borrower withdraws funds from the Pledged Deposit without Lender's prior written consent; (c) Borrower becomes insolvent, makes an assignment for the benefit of creditors, or files for bankruptcy protection; (d) any representation or warranty herein proves materially false when made.","Defining default as any missed payment with zero cure period. In most jurisdictions, courts expect lenders to provide at least a 5–10 day written notice and cure period before accelerating, and notes without a cure period are sometimes found unconscionable.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Acceleration and Remedies","Gives the lender the right to declare the entire unpaid balance immediately due upon a default and to apply the pledged deposit proceeds directly against the outstanding obligation.","Upon the occurrence of an Event of Default, Lender may, at its option and without further notice, (a) declare the entire unpaid principal balance and all accrued interest immediately due and payable, and (b) exercise all rights of a secured party under applicable law, including applying the proceeds of the Pledged Deposit to satisfy all amounts outstanding under this Note.","Omitting the right to apply the deposit without a court order. If the note does not expressly grant the lender a contractual setoff or self-help remedy over the pledged account, the lender may need to initiate legal proceedings before touching the deposit — defeating the purpose of liquid collateral.",{"name":287,"plain_english":332,"sample_language":333,"common_mistake":334},"States whether the borrower may repay the loan early and whether a prepayment penalty applies, including the formula for calculating it.","Borrower may prepay the outstanding principal balance, in whole or in part, at any time without premium or penalty, provided that all accrued and unpaid interest through the prepayment date is paid simultaneously.","Omitting a prepayment clause entirely. Without it, the parties may dispute whether early repayment is permitted, and in some jurisdictions the note may be interpreted as prohibiting prepayment — trapping the borrower in the repayment schedule even if funds are available.",{"name":336,"plain_english":337,"sample_language":338,"common_mistake":339},"Representations and Warranties","The borrower confirms that it has authority to enter the agreement, that the pledged deposit is free of other liens, and that execution does not violate any other obligation.","Borrower represents and warrants that: (a) Borrower has full authority to execute this Note and pledge the Pledged Deposit; (b) the Pledged Deposit is owned solely by Borrower and is free and clear of all liens, claims, and encumbrances other than the security interest granted herein; (c) execution of this Note does not violate any agreement to which Borrower is a party.","Omitting the 'no prior liens' representation. If the deposit is already pledged to another creditor, the new lender's security interest is subordinate — and the note's collateral protection is illusory without an express warranty to the contrary.",{"name":341,"plain_english":342,"sample_language":343,"common_mistake":344},"Governing Law, Waiver, and Entire Agreement","Specifies the jurisdiction whose law governs the note, the borrower's waiver of presentment and notice of dishonor, and confirms the note constitutes the entire agreement between the parties on the subject matter.","This Note shall be governed by the laws of [STATE/PROVINCE]. Borrower waives presentment, demand for payment, protest, and notice of dishonor. This Note constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior negotiations and understandings.","Omitting the borrower's waiver of presentment and notice of dishonor. Without this waiver, state law may require the lender to formally present the note for payment and give specific notices before the note is enforceable — adding procedural delays that eliminate the benefit of liquid collateral.",[346,351,356,361,366,371,376],{"step":347,"title":348,"description":349,"tip":350},1,"Enter the parties' full legal names and the loan date","Use the borrower's and lender's registered legal entity names — not trade names or abbreviations. Include the state or province of formation for each entity and the date of execution.","Cross-reference the name on the pledged bank account against the borrower's legal name before signing — a mismatch can delay or block the control agreement with the depository bank.",{"step":352,"title":353,"description":354,"tip":355},2,"State the principal amount and interest rate","Enter the exact loan amount in numerals and words (e.g., '$50,000 (Fifty Thousand Dollars)'). State the annual interest rate and specify the day-count convention (365 or 360 days).","For loans between related parties in the US, verify that the interest rate meets or exceeds the current IRS Applicable Federal Rate (AFR) to avoid imputed-income issues.",{"step":357,"title":358,"description":359,"tip":360},3,"Complete the repayment schedule","Enter the installment amount, payment frequency, first payment date, and final maturity date. Attach a complete amortization schedule as Exhibit A showing each payment's interest and principal components.","Use an online amortization calculator to generate the schedule, then paste it into the exhibit — errors in manual calculations compound over the loan term.",{"step":362,"title":363,"description":364,"tip":365},4,"Identify the pledged deposit account","Enter the full name of the depository bank, the account number, and the account type (savings, money market, or CD). Specify the minimum balance the borrower must maintain throughout the loan term.","Set the minimum balance at 110–125% of the outstanding principal balance at each point in the amortization schedule to preserve adequate collateral coverage as the loan pays down.",{"step":367,"title":368,"description":369,"tip":370},5,"Arrange the deposit account control agreement","Contact the depository bank before or concurrently with signing the note to initiate a DACA. Confirm the bank's form and execution timeline — some banks require 10–15 business days to process the agreement.","Do not disburse loan proceeds until the DACA is fully executed and in place. Funding before perfection leaves the lender unsecured.",{"step":372,"title":373,"description":374,"tip":375},6,"Define the events of default and cure period","Specify each default trigger clearly — missed payment, unauthorized account withdrawal, insolvency, or breach of warranty. Include a written notice and cure period of at least 5–10 days for payment defaults.","Distinguish curable defaults (missed payment) from non-curable defaults (fraud, insolvency) — give a cure period only for the former to preserve lender remedies on serious breaches.",{"step":377,"title":378,"description":379,"tip":380},7,"Confirm governing law and execute before funding","Select the governing jurisdiction — typically the state or province where the lender or borrower is located or where the pledged account is held. Both parties must sign before any funds are disbursed.","File a UCC-1 financing statement in addition to the DACA as a belt-and-suspenders measure — while control is the primary perfection method for deposit accounts, a UCC-1 provides additional public notice of the security interest.",[382,386,390,394,398,402],{"mistake":383,"why_it_matters":384,"fix":385},"Failing to execute a deposit account control agreement","Under UCC Article 9, a security interest in a deposit account is only perfected by control — not by filing a financing statement alone. Without a DACA, the lender's interest is unperfected and subordinate to a subsequent lien holder or a bankruptcy trustee.","Require the DACA to be executed concurrently with the note and condition loan disbursement on the bank's countersignature of the control agreement.",{"mistake":387,"why_it_matters":388,"fix":389},"No minimum balance requirement on the pledged account","If the borrower can freely withdraw funds from the pledged account, the collateral may be depleted to zero before any default is triggered, leaving the lender with no security.","Specify a minimum balance covenant in the pledge clause — typically at least 100% of the current outstanding principal — and treat any breach as an immediate event of default.",{"mistake":391,"why_it_matters":392,"fix":393},"Omitting an amortization schedule exhibit","Describing the payment amount in the body of the note without an attached schedule creates disputes over exactly how much is owed at any given point, particularly after partial prepayments.","Attach a complete amortization table as a numbered exhibit, have both parties initial it at signing, and include a provision stating that the schedule governs in the event of any discrepancy.",{"mistake":395,"why_it_matters":396,"fix":397},"Setting an interest rate below the IRS Applicable Federal Rate for related-party loans","For US loans between related parties — family members, shareholders, or affiliated entities — a rate below the IRS AFR triggers imputed interest rules, meaning the IRS treats phantom interest as taxable income to the lender regardless of what was actually paid.","Check the current AFR for the applicable term (short, mid, or long) on the IRS website before finalizing the rate, and document the rate selection in a contemporaneous memo.",{"mistake":399,"why_it_matters":400,"fix":401},"No cure period for payment defaults","A note that allows immediate acceleration on the first missed payment, without any notice or cure period, may be found unconscionable or unenforceable in some jurisdictions, particularly for consumer borrowers.","Include a written notice requirement and a 5–10 day cure period for payment defaults while preserving the right to accelerate immediately on non-curable defaults such as insolvency or fraud.",{"mistake":403,"why_it_matters":404,"fix":405},"Using a trade name instead of a registered legal entity name","If the name on the note does not match the legal owner of the pledged account, the bank may refuse to execute the DACA or the security interest may be challengeable in a bankruptcy proceeding as granted by the wrong party.","Verify the exact registered legal name of the borrower against the account title at the depository bank before drafting and confirm any discrepancy with a legal name change or doing-business-as documentation.",[407,410,413,416,419,422,425,428,431],{"question":408,"answer":409},"What is an installment note with bank deposit as collateral?","An installment note with bank deposit as collateral is a promissory note in which the borrower agrees to repay a loan in regular scheduled installments and simultaneously pledges a specific bank deposit account — such as a savings account, money market account, or certificate of deposit — as security. If the borrower defaults, the lender has a contractual and legal right to apply the pledged deposit directly against the outstanding balance without initiating a separate lawsuit to recover the asset.\n",{"question":411,"answer":412},"How is this different from a standard unsecured installment note?","An unsecured installment note relies solely on the borrower's promise to pay; the lender's only recourse on default is to sue for the unpaid balance. A note secured by a bank deposit gives the lender a direct claim against a specific liquid asset — the deposit account — that can typically be applied against the debt far faster and at lower cost than litigation. The collateral pledge also reduces the lender's credit risk, which often supports a lower interest rate for the borrower.\n",{"question":414,"answer":415},"Does the lender need to file a UCC-1 to secure a bank deposit?","Under UCC Article 9, the primary and only effective method of perfecting a security interest in a deposit account is by establishing control — most commonly through a deposit account control agreement with the depository bank. A UCC-1 financing statement alone does not perfect a security interest in a deposit account. However, filing a UCC-1 in addition to obtaining a DACA is still advisable as it provides public notice and supports priority arguments in complex creditor disputes.\n",{"question":417,"answer":418},"What is a deposit account control agreement and why does it matter?","A deposit account control agreement is a three-party agreement among the lender, the borrower, and the depository bank. Under it, the bank acknowledges the lender's security interest and agrees to follow the lender's instructions regarding the account — including blocking withdrawals or remitting funds to the lender on an event of default — without the borrower's further consent. Without a DACA, the lender's security interest in the deposit account is unperfected under UCC Article 9, meaning it is subordinate to a bankruptcy trustee and most competing creditors.\n",{"question":420,"answer":421},"Can the borrower still use the pledged deposit account while the loan is outstanding?","That depends entirely on what the note and DACA permit. In many arrangements, the borrower retains access to funds above the required minimum balance, and the lender only takes control on a default event. In higher-risk or lower-credit scenarios, the lender may require a restricted or blocked account from which the borrower cannot withdraw without written lender consent. The note should state the access terms explicitly to prevent disputes.\n",{"question":423,"answer":424},"What happens to the pledged deposit when the loan is fully repaid?","Once the borrower has made all scheduled installment payments and the note is paid in full, the lender should execute a written release of its security interest, terminate the DACA, and instruct the depository bank to release any holds or restrictions on the pledged account. The lender should also file a UCC-3 termination statement if a UCC-1 was filed. The note template should include a release obligation clause to give the borrower a contractual right to demand this upon payoff.\n",{"question":426,"answer":427},"Is this document enforceable if signed between related parties or family members?","Yes, provided the note is properly documented, contains commercially reasonable terms, is executed in writing before funds are transferred, and — in the US — bears an interest rate at or above the applicable IRS Applicable Federal Rate for the loan term. Courts look for arm's-length characteristics when evaluating related-party notes, particularly in bankruptcy or tax proceedings. A well-documented note with a proper collateral pledge is generally treated as enforceable in most jurisdictions.\n",{"question":429,"answer":430},"What interest rate should I use on an installment note?","For purely private commercial loans, the parties may agree to any rate that complies with applicable usury laws — typically well above the market floor. For related-party loans in the US, the rate must equal or exceed the IRS Applicable Federal Rate for the applicable term to avoid imputed-interest tax consequences. In Canada, the Criminal Code prohibits effective annual rates above 60%. In the UK and EU, consumer credit legislation caps rates for consumer borrowers, though commercial notes are generally less restricted. Always verify current rate limits with a qualified adviser before finalizing the note.\n",{"question":432,"answer":433},"Do I need a lawyer to prepare this document?","For straightforward commercial loans between creditworthy parties in a single domestic jurisdiction, a high-quality template is usually an adequate starting point. Legal review is strongly recommended when the loan amount is significant (above $50,000), when the borrower is a related party raising tax or estate-planning issues, when the transaction is cross-border, or when the parties need to negotiate DACA terms with a major financial institution. A 1–2 hour attorney review typically costs $300–$600 and is worthwhile for any secured lending transaction.\n",[435,439,443,447],{"industry":436,"icon_asset_id":437,"specifics":438},"Financial Services and Private Lending","industry-fintech","Private lenders and non-bank finance companies use deposit-backed installment notes to originate secured loans at lower risk without requiring real property collateral.",{"industry":440,"icon_asset_id":441,"specifics":442},"Real Estate","industry-real-estate","Real estate investors pledge earnest money deposits or escrow accounts as collateral on bridge loans, using the note to formalize repayment terms while a property acquisition or development closes.",{"industry":444,"icon_asset_id":445,"specifics":446},"Professional Services","industry-professional-services","Law firms, accounting practices, and consulting businesses use deposit-backed notes to structure partner buy-ins or succession financing secured against the incoming partner's capital account.",{"industry":448,"icon_asset_id":449,"specifics":450},"Technology and SaaS","industry-saas","Early-stage technology companies use installment notes secured by founder deposit accounts to formalize angel or family-office bridge loans without triggering equity dilution at an early valuation.",[452,456,460,463],{"vs":453,"vs_template_id":454,"summary":455},"Unsecured Installment Note","installment-note-D428","An unsecured installment note carries no collateral pledge — the lender's only recourse on default is a lawsuit for the unpaid balance. An installment note secured by a bank deposit gives the lender a direct claim against a liquid asset, dramatically reducing recovery risk and cost. Use the secured version whenever the borrower has a suitable deposit account and the lender requires meaningful credit protection.",{"vs":457,"vs_template_id":458,"summary":459},"Secured Promissory Note (Equipment or Receivables)","secured-promissory-note-D13303","A secured promissory note can pledge any type of personal property — equipment, inventory, or receivables — as collateral. A deposit-backed note specifically targets a bank account, which is uniquely liquid and value-certain. The perfection mechanics differ significantly: equipment collateral is perfected by UCC-1 filing, while deposit collateral requires a deposit account control agreement with the bank.",{"vs":248,"vs_template_id":461,"summary":462},"demand-promissory-note-D13304","A demand note is repayable in full whenever the lender demands, with no fixed schedule. An installment note establishes a predictable repayment cadence that both parties can plan around. Use a demand note for short-term bridge arrangements where timing is uncertain; use an installment note when both parties want a defined amortization schedule and a fixed maturity date.",{"vs":464,"vs_template_id":465,"summary":466},"Business Loan Agreement","business-loan-agreement-D13226","A business loan agreement is a comprehensive multi-party credit facility document covering covenants, representations, conditions precedent, and detailed default mechanics — appropriate for bank-originated commercial loans. An installment note is a shorter, more direct instrument suited to private or bilateral lending. For transactions with institutional lenders, the full loan agreement is typically required; for private or intra-company loans, the note is sufficient.",{"use_template":468,"template_plus_review":472,"custom_drafted":476},{"best_for":469,"cost":470,"time":471},"Private bilateral loans under $50,000 between creditworthy commercial parties in a single domestic jurisdiction","Free","30–60 minutes",{"best_for":473,"cost":474,"time":475},"Loans above $50,000, related-party transactions with tax implications, or any arrangement requiring DACA negotiation with a major bank","$300–$700","2–5 business days",{"best_for":477,"cost":478,"time":479},"Cross-border secured lending, institutional lenders, complex multi-tranche structures, or transactions where non-compete enforceability of collateral terms is critical","$1,500–$5,000+","1–3 weeks",[481,486,491,496],{"code":482,"name":483,"flag_asset_id":484,"note":485},"us","United States","flag-us","UCC Article 9 governs security interests in deposit accounts. Perfection by control via a DACA is mandatory — a UCC-1 filing alone does not perfect a deposit account security interest. Usury laws vary by state; some states cap interest rates for commercial notes. For related-party loans, the IRS Applicable Federal Rate sets the minimum interest rate to avoid imputed income. California, New York, and Texas each have specific lender-licensing and usury provisions that may apply depending on the parties involved.",{"code":487,"name":488,"flag_asset_id":489,"note":490},"ca","Canada","flag-ca","Personal Property Security Acts (PPSAs) in each province govern security interests in deposit accounts, broadly analogous to UCC Article 9. Perfection by control or registration under the applicable PPSA is required. The federal Criminal Code prohibits effective annual interest rates above 60%, which applies to all loans including commercial notes. Quebec transactions are governed by the Civil Code of Quebec, which has different pledge and security documentation requirements from common-law provinces.",{"code":492,"name":493,"flag_asset_id":494,"note":495},"uk","United Kingdom","flag-uk","Security over bank deposits in England and Wales is typically created by way of fixed charge or mortgage rather than a UCC-style pledge. A control arrangement equivalent to a DACA — often called a blocked account or account charge agreement — is standard practice. Lenders must comply with FCA consumer credit regulations if the borrower is an individual. Stamp duty does not apply to promissory notes in most circumstances, but legal advice is recommended for any transaction above £50,000.",{"code":497,"name":498,"flag_asset_id":499,"note":500},"eu","European Union","flag-eu","Security over deposit accounts varies significantly across EU member states. Germany uses account pledge agreements under §1274 BGB; France uses a nantissement de compte bancaire under the Code monétaire et financier. The EU Financial Collateral Arrangements Directive provides a harmonized framework for financial collateral — including cash and deposit accounts — that simplifies enforcement across member states for eligible counterparties. Consumer credit directives cap rates and impose disclosure requirements for any note where the borrower is a natural person.",[502,245,249,253,503,253,253,504,245,505,245,506],"secured-installment-note-D440","promissory-note-D429","pledge-agreement-advance-D903","credit-agreement-D416","security-agreement-D915",{"emit_how_to":200,"emit_defined_term":200},{"primary_folder":163,"secondary_folder":509,"document_type":510,"industry":511,"business_stage":512,"tags":513,"confidence":519},"loans-and-promissory-notes","agreement","general","all-stages",[514,515,516,517,518],"loan","promissory-note","collateral","installment-payment","security-agreement",0.95,"\u003Ch2>What is an Installment Note Bank Deposit As Collateral?\u003C/h2>\n\u003Cp>An \u003Cstrong>Installment Note Bank Deposit As Collateral\u003C/strong> is a legally binding promissory note in which a borrower commits to repaying a loan through a defined series of periodic installments — monthly being most common — while simultaneously pledging a specific bank deposit account as security for that repayment obligation. The deposit may be a savings account, money market account, or certificate of deposit held at a named financial institution. Unlike an unsecured installment note, this instrument gives the lender a perfected security interest in a liquid, value-certain asset: if the borrower misses payments or otherwise defaults, the lender can apply the pledged deposit directly against the outstanding balance, typically without the delay and cost of court proceedings. The note governs both the payment obligation and the collateral arrangement in a single enforceable document, supplemented by a deposit account control agreement executed with the depository bank.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a properly documented installment note and a perfected security interest in the pledged deposit, a lender advancing funds faces the same recovery risk as an unsecured creditor — meaning a default triggers expensive litigation rather than a straightforward application of the collateral. The absence of a written amortization schedule invites disputes over exactly how much is owed at each point in the loan. Failing to execute a deposit account control agreement leaves the security interest unperfected under UCC Article 9, which means a bankruptcy trustee or a later-arriving creditor can claim priority over the deposit the lender believed was locked down. Related-party loans documented only by email or informal agreement are routinely recharacterized as gifts or equity contributions by tax authorities and bankruptcy courts. This template provides the complete documented structure — parties, rate, schedule, pledge mechanics, control agreement requirement, default triggers, and remedies — that transforms an informal lending arrangement into an enforceable secured obligation with predictable outcomes for both sides.\u003C/p>\n",1778696351135]