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Promissory Note With Payment Schedule for Australia

Promissory Note With Payment Schedule Template for Australia

A legally binding financial instrument governed by Australian law that documents a written promise to pay a specified sum of money under defined terms and conditions. The document incorporates a detailed payment schedule specifying the timing and amount of each installment, interest calculations, and default provisions. It complies with the Bills of Exchange Act 1909 (Cth) and relevant state legislation, providing a structured framework for debt repayment while protecting both the lender's and borrower's interests through clear documentation of obligations and remedies.

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What is a Promissory Note With Payment Schedule?

The Promissory Note With Payment Schedule is a fundamental financial instrument used in Australian business and personal transactions where structured repayment of debt is required. This document is essential when parties need to formalize lending arrangements with specific repayment terms, whether for business financing, asset purchases, or personal loans. It combines the legal certainty of a promissory note with detailed payment scheduling, making it particularly useful for installment-based repayment arrangements. The document must comply with Australian federal legislation, including the Bills of Exchange Act 1909 (Cth) and the National Consumer Credit Protection Act 2009 (Cth) where applicable, as well as relevant state laws. It's commonly used in situations requiring documented proof of debt with clear repayment terms, providing security for the lender while giving the borrower a structured repayment plan.

What sections should be included in a Promissory Note With Payment Schedule?

1. Parties: Identifies the Promissor (maker of the note) and Promissee (payee), including full legal names and addresses

2. Background: Brief context of the debt obligation and purpose of the promissory note

3. Definitions: Defines key terms used throughout the document

4. Promise to Pay: Unconditional promise to pay the principal amount, including the exact sum in numbers and words

5. Payment Terms: Details of the payment schedule, including payment amounts, frequency, and due dates

6. Interest Rate: Specification of any applicable interest rate, how it's calculated, and when it applies

7. Default Provisions: Consequences of missing payments and what constitutes a default

8. Acceleration Clause: Circumstances under which the entire amount becomes immediately due and payable

9. Governing Law: Specifies that Australian law governs the agreement and identifies relevant jurisdiction

10. Execution: Signature block with date and witness requirements

What sections are optional to include in a Promissory Note With Payment Schedule?

1. Security: Details of any collateral or security provided to guarantee the note, used when the note is secured

2. Prepayment Provisions: Terms for early payment of the note, including any penalties or benefits, included when early payment is anticipated

3. Late Payment Fees: Additional charges for late payments, included when specific penalties for late payment are desired

4. Assignment: Terms regarding the transfer or assignment of the note to third parties, included when the note may be transferred

5. Co-Signers: Details of any co-signers or guarantors, included when additional parties are guaranteeing the note

6. Insurance Requirements: Required insurance coverage for secured assets, included when collateral is involved

7. Amendment Process: Process for modifying the terms of the note, included in complex or long-term arrangements

What schedules should be included in a Promissory Note With Payment Schedule?

1. Payment Schedule: Detailed table of all payment dates, amounts, and allocation between principal and interest

2. Security Details: Comprehensive description of any collateral or security, including valuations and registration details

3. Calculation Method: Detailed explanation of interest calculations and amortization schedule

4. Direct Debit Authorization: Banking details and authorization for automatic payments if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions






























Clauses
























Relevant Industries

Banking and Financial Services

Real Estate

Small Business

Construction

Manufacturing

Professional Services

Agriculture

Retail

Private Lending

Investment Services

Education

Relevant Teams

Legal

Finance

Treasury

Credit and Collections

Risk Management

Compliance

Commercial Lending

Corporate Secretariat

Accounts Receivable

Business Development

Relevant Roles

Financial Controller

Credit Manager

Legal Counsel

Finance Director

Accounts Receivable Manager

Risk Manager

Treasury Manager

Collections Officer

Business Development Manager

Commercial Lending Officer

Contract Administrator

Chief Financial Officer

Loan Officer

Corporate Secretary

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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