Templates

Loan Note Instrument Template

This loan note instrument template is an 'instrument' that is signed by a company setting out the terms on which notes may be issued to multiple noteholders. Read more
Legislation GB-EAW
Topics Updated by a lawyer: 29 Jun 2023

Loan note instrument template - in brief

One of the ways to raise money: Most businesses will need to raise money at some point during the normal business lifecycle. There are a number of ways to do this, from external investment to crowdfunding. One of the many ways that companies commonly raise money is by borrowing it from someone else. Sometimes this may be achieved by way of a loan agreement, however, sometimes a company may issue 'loan notes' or 'notes' to one or more persons (otherwise known as 'noteholders') as a way of evidencing a debt owed by the company to them. In this instance, you would use a loan note instrument.

Instrument: This loan note instrument template is an 'instrument' that is signed by a company setting out the terms on which notes may be issued to multiple noteholders. Even though notes are issued to multiple noteholders, notes issued under the instrument are treated as a single debt owed by a company.

Notes: The notes bear a fixed rate of interest and are unsecured. It includes options for interest to be paid before the total amount of the loan represented by the 'notes' is repaid or for interest to be paid in a lump sum together with the total amount of the loan represented by the notes on one or more specified dates.

How can I be sure that the loan note instrument is of high quality?

Lawyer-made content: Docue’s loan note instrument template is drafted and maintained by expert business lawyers. Our modern technology combined with our lawyer-made content allows you to create lawyer-grade legal documents with just a few clicks.

Support available: The loan note instrument template includes guidance prepared by our lawyers that supports you through the drafting process.

Tags: loan note instrument template, loan note instrument, noteholders, loan notes

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Legislation GB-EAW
Topics Updated by a lawyer: 29 Jun 2023

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