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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
By virtue of these holdings, the amendment to the Loan Note constitutes a related party transaction in accordance with Rule 13 of the AIM Rules for Companies.
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.
In either case, provided the loan note permits early encashment before 6 April 2008 and it is commercially feasible, it would be sensible to secure the benefit of taper relief, and the 10 per cent tax rate which goes with it.
The transactions will see GLI dispose a number of assets to SMEF including existing holdings in the loan note of a pharmaceutical company, a solar energy construction loan and stakes in two BMS Finance structures.
Chairman Peter Ridsdale spelt out the financial difficulties as the club prepares for a High Court case against the loan note holders on March 10.
Living Ventures has used the proceeds to reduce bank indebtedness, repay outstanding loan note interest and preference debt due to the Restaurant Group, with the remaining proceeds being distributed to the shareholders of Living Ventures.
United are to raise pounds 10m via a loan note allocation scheme to be approved by shareholders towards the end of the month.
United are to raise ElOmillion via a loan note allocation scheme to be approved by shareholders towards the end of the month.
"However, one of the shareholders is receiving a loan note for the sale of their shares instead of cash or equity and so now has a Murabaha financing structure instead of a traditional interest bearing loan note.
On the 9 August 2016 REM announced that it had conditionally raised USD 15m through a loan note convertible into ordinary shares in the company.