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The Recourse Promissory Note is a fundamental financial instrument used when one party (the Maker) wishes to document their obligation to repay a loan to another party (the Payee), while providing the Payee with comprehensive rights of recovery. This document is particularly relevant in situations where the lender requires additional security beyond specific collateral, such as in business loans, private lending arrangements, or real estate transactions. Under Canadian law, these notes must comply with the Bills of Exchange Act and provincial regulations regarding interest rates and debt collection. The recourse nature of the note means that if the borrower defaults and the value of any specific collateral is insufficient to cover the debt, the lender can pursue the borrower's other assets or income to satisfy the outstanding obligation. This makes it a stronger form of security compared to non-recourse notes, particularly suitable for situations where the lender requires maximum protection for their investment.

1. Parties: Identification of the Maker (borrower/promisor) and Payee (lender/promisee) with full legal names and addresses

2. Promise to Pay: Clear statement of the unconditional promise to pay, including the principal amount in both numbers and words

3. Payment Terms: Details of how and when payments will be made, including interest rate, payment schedule, and maturity date

4. Interest: Specification of interest rate, how it's calculated, and frequency of compounding

5. Place of Payment: Where and how payments are to be made

6. Prepayment: Terms regarding early payment of the note

7. Default: Definition of events of default and consequences

8. Remedies: Rights and remedies of the Payee upon default, including acceleration clause

9. Recourse: Specific language establishing the recourse nature of the note and the extent of maker's personal liability

10. Governing Law: Specification of applicable Canadian jurisdiction

11. Signature Block: Space for dating and signatures of all parties