Term Loan Promissory Note
(Credit Agreement)

Summary

This template is a term loan promissory note in a typical syndicated loan transaction. The promissory note evidences the term loan indebtedness of a borrower to the lender funded under a credit agreement. This template includes practical guidance, drafting notes, and optional and alternate clauses. Promissory notes are not necessary in syndicated loan transactions, but certain lenders prefer physical evidence of their loan as an acknowledgement by the borrower of its obligation to repay that specific lender. Conform the capitalized terms to the defined terms in the relevant credit agreement. Non-negotiable promissory notes that contain a full set of covenants are found in Promissory Note (Construction Loan) and Promissory Note (Acquisition Loan). You can find additional types of notes issued in connection with credit agreement facilities at Swing Line Promissory Note (Credit Agreement), Revolving Promissory Note (Credit Agreement), and Competitive Bid Loan Promissory Note (Credit Agreement). See also Security Interests Resource Kit and Credit Agreement Resource Kit for additional templates and guidance. 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).