Installment Note Using Deposit Account as Collateral

Commercial lenders, prepare an Installment Promissory Note with this template form, under which a borrower agrees to set up a deposit account with the lender as collateral for the loan.

The borrower must make a minimum deposit in the account at regular intervals (such as monthly), as security against default in repayment of the loan.
The Note contains an acceleration clause, so that if the borrower defaults in a payment or becomes bankrupt or insolvent, the entire balance together with interest becomes immediately due and payable.
The Note also contains a provision that the borrower must pay liquidated damages if the borrower defaults in making a payment.

This Installment Note Using Deposit Account as Collateral is available in MS Word format, and can be edited as necessary to include all the specifics of your transaction.