Canadian lenders, use this template to prepare an
Installment Promissory Note with a deposit account as collateral.
- The maker of the Note (the borrower) agrees to set up a deposit account with the lender and make a specified minimum deposit in the account at regular intervals (such as monthly), as security against default by the borrower.
- The Note contains an acceleration clause, i.e. if the borrower defaults in a payment or becomes bankrupt or insolvent, the entire balance together with interest becomes immediately due and payable.
- The borrower will pay the lender a specified amount in liquidated damages in the event of default.
This
Canada Promissory Note Using Deposit Account as Collateral is provided in MS Word format, and is fully editable to fit your specific circumstances.
