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Promissory Note Compound Interest Template for Singapore

A legally binding financial instrument governed by Singapore law that documents a written promise to pay a specified sum of money, with compound interest, at a predetermined future date or on demand. The document incorporates Singapore's regulatory requirements for interest calculations and includes specific provisions for enforcement under local jurisdiction.

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What is a Promissory Note Compound Interest?

The Promissory Note Compound Interest is a specialized financial instrument used in Singapore when one party needs to formalize a promise to repay a loan with compound interest. This document type is particularly relevant under Singapore's financial regulatory framework, which provides specific guidelines for interest calculations and enforcement. The note includes essential elements such as the principal amount, compound interest rate, payment schedule, and maturity date, while complying with local usury laws and the Moneylenders Act.

What sections should be included in a Promissory Note Compound Interest?

1. Promise to Pay: Unconditional promise to pay a specific sum with clear identification of the maker and payee

2. Principal Amount: Clear statement of the borrowed amount in numbers and words

3. Interest Rate: Specification of compound interest rate, compounding frequency, and calculation method in compliance with Singapore law

4. Payment Terms: Schedule and method of payments, including frequency and manner of payment

5. Maturity Date: Specific date when the full amount becomes due and payable

What sections are optional to include in a Promissory Note Compound Interest?

1. Security: Details of any collateral or security provided to guarantee the note

2. Acceleration Clause: Conditions under which the lender may demand immediate payment of the entire outstanding amount

3. Prepayment Terms: Conditions and procedures for early repayment of the note

4. Default Provisions: Consequences of default and remedies available to the lender

5. Governing Law: Explicit statement of Singapore law as governing law and jurisdiction

What schedules should be included in a Promissory Note Compound Interest?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and running balance

2. Interest Calculation Schedule: Detailed method and examples of compound interest calculations

3. Security Details: Comprehensive description of any collateral or security arrangements if applicable

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

Jurisdiction

Singapore

Document Type

Promissory Note

Sector

Banking

Cost

Free to use

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