DIY Legal Forms

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Term Note

[$------]

[date]

[city], [state]

FOR VALUE RECEIVED, the undersigned, [name], a [state] corporation (Borrower), HEREBY PROMISES TO PAY to the order of [name] (Bank) at its Principal Office located at [address] the principal amount of ---------- dollars ($----------) in lawful money of the United States and in immediately available funds in [number] consecutive monthly [or, quarterly, semiannual] installments of ---------- dollars ($----------) each on the first [or, last, number] day of each [names of months] commencing [date] and ending [date], provided, however, that the last such installment shall be in the amount necessary to repay in full the unpaid principal amount of this Term Note, and to pay interest on the unpaid principal amount of this Term Note from the date of this Term Note until such principal amount becomes due (computed on the basis of a year of [number] days for the actual number of days elapsed) at a rate per annum equal to ---------- percent (----------%) above the Prime Rate, payable on the first [or, last, number] day of each month [or, quarter], commencing [date], and at maturity. Any amount of principal hereof that is not paid when due, whether at stated maturity, by acceleration, or otherwise, shall bear interest from the date when due until said principal amount is paid in full, payable on demand, at a rate per annum equal at all times to ---------- percent (----------%) above the Prime Rate. Any change in the interest rate resulting from a change in the Prime Rate shall be effective at the beginning of the day on which such change in the Prime Rate becomes effective.

If any installment of this Term Note becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day, and interest shall be payable thereon at the rate herein specified during such extension.

This Term Note is the Note referred to in, and is entitled to the benefits of, the Term Loan Agreement, dated as of [date], between Borrower and Bank (Credit Agreement). Terms used herein that are defined in the Credit Agreement shall have their defined meanings when used herein. The Credit Agreement, among other things, contains provisions for acceleration of the maturity of this Term Note upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity of this Term Note upon the terms and conditions specified in the Credit Agreement. This Term Note is secured by a Security Agreement referred to in the Credit Agreement, reference to which is hereby made for a description of the collateral provided for under the Security Agreement and the rights of Borrower and Bank with respect to such collateral.

This Term Note shall be governed by the laws of [state], provided that, as to the maximum rate of interest that may be charged or collected, if the laws applicable to Bank permit it to charge or collect a higher rate than the laws of [state], then such law applicable to Bank shall apply to Bank under this Term Note.

[name of Borrower]

By: [signature]

[title]

To a great extent, the provisions of a revolving credit agreement are the same as those of a term loan agreement (Form 5.1.01). The only substantial changes are in Articles II and III, which are provided below. A minor change is present in Article VII in which the introductory sentence to the Article should read: "So long as the Note shall remain unpaid or Bank shall have any Commitment under this Agreement. " Another small change is required in Section 8.01 where, following the description of all the events of default, the following must be inserted before the language giving the bank the right to declare the note payable: "Bank may declare its obligation to make Loans to be terminated, whereupon the same shall forthwith terminate."

*** If Required By State Law ***

This Section for Notary:

Acknowledgment

State of _________

County of ________ [County]

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

Signature ________
Notary

My commission expires: _____

(Seal)