Gap Promissory Note
(Acquisition Financing)

Summary

This gap promissory note template is for use when 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 template includes practical guidance and drafting notes. This gap promissory note template 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. For further guidance, see Gap Promissory Notes and Gap Mortgages / Deeds of Trust (Acquisition Loan). For a full listing of key content covering acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance).