Secured Promissory Note
(Consolidated Note) (TX)

Summary

This secured promissory note template is for use in a loan transaction to evidence the indebtedness of a borrower to a lender secured by real property located in Texas. The template provides for a borrower to pay the lender a specific amount at the time(s) and pursuant to the terms as set forth in the note. This note includes a convertible interest rate at the option of the borrower during the term of the loan. This template includes practical guidance, drafting notes, and alternate clauses. This note is to be secured by a first deed of trust and an assignment of leases and rents, which documents will be entered into contemporaneously with the note. Additionally, except in those situations enumerated in the note (e.g., instances in which liability or loss arise out of some type of borrower misrepresentation, fraud, misconduct or wrongdoing), the note is non-recourse as to the borrower for any deficiency. The lender may only look to those assets designated in the loan documents which secure the note to satisfy the borrower's obligations. This note assumes that the borrower is a corporation. If the borrower is another type of entity or not an entity at all, revise the template accordingly. This template is governed by the laws of Texas. For more on promissory notes, see Promissory Notes (Acquisition Loan). For more on commercial real estate financing transactions in Texas, see Commercial Real Estate Financing Transactions (TX). For a general template of an acquisition loan promissory note, see Promissory Note (Acquisition Loan). For a full listing of content relating to promissory notes for use in various practice areas, see Promissory Notes Resource Kit (Small to Mid-Sized Law).