Loan note

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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 ?
The businesses used loan notes to pay company directors bonuses in an attempt to get around paying tax and National Insurance on their awards.
Thomson has unsecured, interest free, short term loans due to the vendors of the business amounting to GBP 269,000, of which GBP 19,000 will not be payable before 14 July 2022, and the balance of GBP250,000 represents unsecured loan notes.
And the new loan notes feature lets users add notes to a loan file directly from their iPad.
BANKING AND CREDIT NEWS-June 11, 2012--EIIB converts USD11m loan notes into Rasmala shares(C)2012 M2 COMMUNICATIONS http://www.
European Goldfields' shareholders will also be offered a further $150 million of loan notes at the same rate.
The first tranche of the Secured Loan Notes 2013 has now closed, raising GBP2,000,000 before expenses, with settlement expected shortly.
However, loan notes are often given instead of cash as they are redeemable over a period of several years.
That meeting, says former owner Hammam, will be in the Lebanon when the two men will work to reach agreement on the Langston loan notes.
MUSCAT: Renaissance Services, Oman-based multinational oil and gas services provider, has announced that its recent issue of subordinated loan notes of RO40 million to Omani investors has been fully subscribed in the largest mezzanine financing offer by a non-banking company in the Sultanate of Oman to date.
Renaissance Services, an Oman-based multinational oil and gas services provider, said its issue of subordinated mezzanine loan notes worth RO40 million ($104 million) to Omani investors has been fully subscribed.
LIVERPOOL specialist cleaning company Proventec has agreed a deal with the holder of more than 75% of its pounds 15m of loan notes to offer shares in return for a reduction in its debts.
Proventec had been seeking support in order to pay pounds 600,000 in interest due on loan notes at the end of last month and admitted that one option was administration.