Promissory Note (Mortgage Evidence of Debt)

Summary

This precedent is a form of promissory note which can be used as further evidence of a debt owing under a mortgage or other real estate backed loan agreement. The Promissory Note is evidence of a promise by the borrower/debtor to repay the mortgagee/chargee/lender at some future time on certain terms. It does not replace the Mortgage or Loan Agreement. It is intended to supplement it and further give it good effect. This precedent includes practical guidance and drafting notes. Borrowers who have granted mortgages/charges against their real property may sometimes be asked to execute a Promissory Note by the lender/mortgagee/creditor. The Promissory Note is only a promise by one party, the debtor, to repay the lender/creditor. In lieu of enforcing on the debt by realizing on the real property as collateral security, the lender/creditor could choose to sue the debtor via the Promissory Note to recover monies. This could be to avoid the lengthy real property realization rules or to avoid ...