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A Rental Promissory Note is commonly used in Canadian rental markets when there is a need to formalize payment obligations related to rental properties. This document type is particularly useful in situations involving rental arrears, structured payment plans, or when landlords require additional security for rent payments. The note must comply with Canadian federal legislation, particularly the Bills of Exchange Act, as well as provincial residential tenancy laws and regulations regarding interest rates and consumer protection. It typically includes details about the principal sum owed, payment schedule, interest rates (if applicable), and consequences of default. This document provides landlords with a more formal and potentially negotiable instrument while giving tenants a clear structure for meeting their rental obligations.

1. Parties: Identifies the Maker (tenant/debtor) and the Payee (landlord/creditor) with their full legal names and addresses

2. Background: References the rental agreement and circumstances leading to this promissory note

3. Definitions: Defines key terms used in the document including 'Principal Sum', 'Interest Rate', and 'Payment Schedule'

4. Promise to Pay: The formal promise to pay the specified amount, including the total sum and reference to the rental debt

5. Payment Terms: Details of how and when payments will be made, including payment schedule and method

6. Interest Rate: Specifies the interest rate (if any) and how it is calculated

7. Default and Acceleration: Consequences of missing payments and conditions under which the full amount becomes immediately due

8. Prepayment Rights: The right of the Maker to pay the note before the due date

9. Governing Law: Specifies that the note is governed by Canadian law and the applicable province

10. Execution: Signature blocks for the Maker and witness, including date of execution