Promissory note

Save Share

This query is : Resolved

indira (Querist)

23 April 2018 My company has sanctioned an amount of USD 100 million loan to a partner. This will be disbursed in three tranches. Should the borrower sign one master promissory note for the total amount which may be received in three tranches or a promissory note be signed every time with the exact loan amount.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 April 2018 The borrower has to sign one master promissory note for the total amount which may be received in three tranches

indira

indira (Querist)

24 April 2018 Thanks. I was actually wondering about the terminology; I will copy paste the text here.

Annex 3
PROMISSORY NOTE

For AFN [INSERT AMOUNT] (the “Loan Amount”)

FOR VALUE RECEIVED, OXUS Afghanistan(“OXUS”), organized under the laws of the Islamic Republic of Afghanistan (the “IRA”), hereby unconditionally promises to pay to the order of Microfinance Investment Support Facility for Afghanistan Ltd.(“MISFA”), a limited liability company formed under the laws of the IRA, the principal sum of up to AFN [INSERT AMOUNT], plus service charges from the date the Loan Amount is disbursed from MISFA’s account (the “Disbursement Date”), in the manner and on the dates specified in the Agreement referred to below.

This Note evidences the drawing down of Loan Funds under, and is referred to in, and is subject to the terms of, the Loan Agreement (the “Agreement”), dated xxxxxxxx, by and between OXUS and MISFA. Unless otherwise defined or provided herein, all terms used herein which are defined in the Agreement shall have their respective meanings as therein defined.
-----------------------------------------
From the text I get a feeling, on the one hand it is a master promissory note; on the other it says the note evidences draw down of the whole amount. Could you please check the text.

indira

indira (Querist)

24 April 2018 Thanks. I was actually wondering about the terminology; I will copy paste the text here. Annex 3 PROMISSORY NOTE For AFN [INSERT AMOUNT] (the “Loan Amount”) FOR VALUE RECEIVED, OXUS Afghanistan(“OXUS”), organized under the laws of the Islamic Republic of Afghanistan (the “IRA”), hereby unconditionally promises to pay to the order of Microfinance Investment Support Facility for Afghanistan Ltd.(“MISFA”), a limited liability company formed under the laws of the IRA, the principal sum of up to AFN [INSERT AMOUNT], plus service charges from the date the Loan Amount is disbursed from MISFA’s account (the “Disbursement Date”), in the manner and on the dates specified in the Agreement referred to below. This Note evidences the drawing down of Loan Funds under, and is referred to in, and is subject to the terms of, the Loan Agreement (the “Agreement”), dated xxxxxxxx, by and between OXUS and MISFA. Unless otherwise defined or provided herein, all terms used herein which are defined in the Agreement shall have their respective meanings as therein defined. ----------------------------------------- From the text I get a feeling, on the one hand it is a master promissory note; on the other it says the note evidences draw down of the whole amount. Could you please check the text.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 April 2018 Note evidences draw down as per loan agreement.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 April 2018 Amount is disbursed from MISFA’s account (the “Disbursement Date”), in the manner and on the dates specified in the Agreement referred to below.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now