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Government Promissory Note for Malaysia

Government Promissory Note Template for Malaysia

A Government Promissory Note is a formal financial instrument issued by the Malaysian government, representing an unconditional promise to pay a specified sum to the bearer or registered holder at a predetermined future date. This document, governed by Malaysian law, particularly the Government Funding Act 1983 and Bills of Exchange Act 1949, serves as a short-term government security and debt instrument. It includes essential elements such as the issue date, maturity date, interest terms, and payment conditions, backed by the full faith and credit of the Malaysian government.

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Government Promissory Note

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What is a Government Promissory Note?

The Government Promissory Note is a crucial instrument in Malaysian public finance, used by the government to manage short-term funding needs and monetary policy implementation. This document type is typically employed when the government needs to raise immediate funds for specific purposes or manage cash flow requirements. As a sovereign debt instrument, it carries the highest level of credit security within the Malaysian financial system. The note must comply with several key pieces of legislation, including the Government Funding Act 1983 and the Bills of Exchange Act 1949, and is typically issued through Bank Negara Malaysia as the government's fiscal agent. The document contains specific terms regarding payment, interest, and maturity, and may be issued in either physical or electronic form under the Electronic Commerce Act 2006.

What sections should be included in a Government Promissory Note?

1. Note Number and Series: Unique identification number and series designation of the promissory note

2. Date of Issue: The date on which the promissory note is issued

3. Issuer Details: Full details of the issuing government entity and authorized representatives

4. Promise to Pay Clause: Unconditional promise to pay a specific sum, including the currency and amount in words and figures

5. Payment Terms: Maturity date, interest rate, and payment schedule details

6. Place of Payment: Specified location or method where payment will be made

7. Transferability Statement: Declaration of whether the note is transferable and under what conditions

8. Governing Law Declaration: Statement that the note is governed by Malaysian law

9. Authorization Statement: Reference to the legal authority under which the note is issued

10. Execution Block: Signature fields for authorized government representatives

What sections are optional to include in a Government Promissory Note?

1. Tax Treatment: Include when specific tax implications or exemptions apply to the note

2. Electronic Form Declaration: Required when the note is issued in electronic form under the Electronic Commerce Act

3. Special Payment Instructions: Include when there are specific payment mechanisms or requirements

4. Force Majeure Clause: Optional clause for extraordinary circumstances affecting payment

5. Currency Risk Statement: Include when the note involves foreign currency considerations

What schedules should be included in a Government Promissory Note?

1. Payment Schedule: Detailed schedule of payment dates and amounts, particularly for notes with multiple payment dates

2. Interest Calculation Method: Detailed explanation of interest calculation methodology and examples

3. Authorized Signatories: List of government officials authorized to sign the note, with their designations

4. Form of Transfer: If transferable, the prescribed form and procedure for transfer of the note

Authors

Alex Denne

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

Jurisdiction

Malaysia

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions





























Clauses

























Relevant Industries

Government and Public Sector

Banking and Financial Services

Public Finance

Treasury Management

Debt Capital Markets

Investment Management

Financial Technology

Public Administration

International Finance

Relevant Teams

Treasury

Finance

Legal

Compliance

Risk Management

Operations

Investment

Trading

Securities Operations

Public Finance

Regulatory Affairs

Relevant Roles

Treasury Manager

Finance Director

Public Finance Officer

Government Securities Trader

Fixed Income Portfolio Manager

Debt Capital Markets Officer

Compliance Officer

Legal Counsel

Financial Controller

Investment Analyst

Risk Manager

Public Debt Officer

Securities Operations Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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