Promissory Note to Seller Clause Samples
The 'Promissory Note to Seller' clause establishes the buyer's obligation to deliver a promissory note as part of the payment for a transaction, typically in the sale of goods, services, or property. This clause details the terms under which the note is issued, such as the principal amount, interest rate, repayment schedule, and any conditions for default or acceleration. By formalizing the buyer's promise to pay the seller over time, the clause provides a clear legal framework for deferred payments, thereby protecting the seller's financial interests and ensuring both parties understand the payment obligations.
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Promissory Note to Seller. Purchaser shall issue to Seller a promissory note ("Promissory Note") pursuant to S1.5 above in the amount of $750,000, or less to the extent that any purchase price adjustment is necessary pursuant to S1.4. Such Promissory Note shall have a five-year term and bear interest at the rate of 7% per annum. The Promissory Note shall be secured by a security interest in the Assets, with its payments and security subordinated to institutional lenders on terms satisfactory to those lenders. The Promissory Note and its related security agreement shall be substantially in the form of Exhibits 1.6 and 1.6.2.
Promissory Note to Seller. Buyer shall issue a secured promissory note (the "Note") in favor of Seller, which Note shall be in the principal amount of 56.25% of the agreed upon historical cost of the Assets (determined according to GAAP) less the Assumed Liabilities at the Closing, less the $300,000.00 cash payment and less any reduction pursuant to Buyer's right of offset set forth in the last sentence of Section III.