Loan note

Loan Note

A contract stating the terms of a loan, such as the principal, the interest rate, and the payment schedule. A loan note states the rights and obligations of both the lender and the borrower. If one party does not fulfill his/her obligations, the other may sue for redress.

Loan note.

A loan note is a promissory agreement describing the terms of a loan and committing the person or institution borrowing the money to live up to those terms.

For example, a mortgage loan note states the principal balance, the interest rate, the discount points, a payment schedule and due date, and any potential penalties for violating the repayment terms.

When the required repayment has been made, the agreement between the parties ends.

References in periodicals archive ?
Convertible Loan Note Extension and Issue of Equity
Global Banking News-July 20, 2011--Red Rock Resources plc - Issue of Secured Loan Note and Warrants(C)2011 ENPublishing - http://www.
The gain attributable to the loan notes is normally taxed when the loan note is repaid, which will be 28% if ER is not available.
This results in a reduced value and coupon loan note and conversion of some debt and loan notes into shares.
5m cash injection, a reduced value and coupon loan note and a significant conversion of debt and loan notes into shares.
The convertible loan note secured during the period will allow the company to accelerate the development of DrugPrint and PathScore.
On 5 February 2014 Ascent Resources PLC announced that it entered into a convertible loan note agreement for up to GBP5 million in funds.
ER does not automatically apply to loan notes, and will (unless an election is made to tax the gain at the same date as the share sale) be taxed at 28% (or maybe even higher if CGT subsequently increases further) when the loan note is repaid.
Proventec also had a large payment to make at the end of June which coincided with a loan note and interest payments.
The loan note holders have been granted naming rights to the new stadium, valued at pounds 9m, and that, says City, leaves pounds 15m owed.
The Company has been issued with 4,546,428 new ordinary shares in All Star Minerals plc in lieu of interest pursuant to the unsecured convertible loan note of GBP20,000 (the "Loan Note").
This reduced gain was capable of being rolled into the loan note so that when the loan note was paid, the reduced gain became taxable at the CGT rate at that time.