Secured Promissory Note
(CA)

Summary

This template is a Secured Promissory Note secured by a first deed of trust, an assignment of leases and rents, a cash deposit, and a commercial guaranty. It includes practical guidance and drafting notes. This template incorporates California law. This promissory note contemplates interest only payments during the term of the loan with a lump sum or balloon payment of all accrued but unpaid interest as well as the principal sum due at maturity. The note is also non-recourse as to the borrower for any deficiency, except in situations enumerated by the note including instances in which liability or loss arises out of some type of borrower misrepresentation, fraud, misconduct, or wrongdoing. For guidance on financing the acquisition of commercial real estate in California, see Commercial Real Estate Acquisition Loan Resource Kit (CA), Opinion Letters in Commercial Real Estate Financing Transactions (CA), and Commercial Real Estate Financing Transactions (CA). See also Junior Associate Real Estate Resource Kit (Acquisition Finance). For guidance for drafting commercial real estate purchase and sale agreements in California, see Purchasing and Selling Commercial Real Estate Resource Kit (CA) and Commercial Real Estate Purchase and Sale Agreements (CA). See also Junior Associate Real Estate Resource Kit (Commercial Purchase and Sale). For information on the purchase and sale of residential real property in California, see Purchase and Sale of Residential Real Property (CA). For a full listing of key content covering purchasing and selling residential real estate, see Purchasing and Selling Residential Real Estate Resource Kit. For a list of key resources covering real estate-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Real Estate, Summer Associate Resource Kit: Real Estate, In-House Real Estate Resource Kit, and Federal Government Summer Intern Resource Kit: Real Estate.