Gap Promissory Note


Summary

This form is a Gap Promissory Note for use if there is an existing loan to a borrower that is being assigned by an existing lender to the current lender, and there is a supplemental or "gap" loan made to increase the aggregate loan amount. This form includes practical guidance and drafting notes.This Gap Promissory Note evidences a loan that is immediately consolidated with an existing loan and the terms of the promissory note evidencing the consolidated loan will prevail, therefore, terms of this Gap Promissory Note are merely pro forma and included to satisfy the minimum requirements for promissory notes.