Promissory Note Sample Pakistan

PROMISSORY NOTE (UNCONDITIONAL)

Document ID: PN-PK-[YYYYMMDD]-001
Effective Date: [Date]
Version: 1.0
Governing Jurisdiction: Islamic Republic of Pakistan (specifically, the laws of the Province of [Insert Province, e.g., Sindh/Punjab])

---

STATUTORY & LEGAL COMPLIANCE NOTICE

DISCLAIMER: This Promissory Note is drafted in accordance with the Negotiable Instruments Act, 1881 of Pakistan. This document constitutes a legally binding obligation. It is strongly advised that the parties seek independent legal counsel to ensure compliance with local Stamp Act requirements (specific to the province of execution), as the failure to affix appropriate adhesive stamps may render this instrument inadmissible as evidence in Pakistani courts.

---

1. PARTIES

MAKER: [Full Legal Name of Borrower], holder of CNIC/Passport No: [Number], residing at [Complete Address] (hereinafter referred to as the "Maker").

PAYEE: [Full Legal Name of Lender/Entity], having its registered office at [Complete Address] (hereinafter referred to as the "Payee").

---

2. PROMISE TO PAY

For value received, the Maker hereby unconditionally promises to pay to the order of the Payee, the principal sum of [Amount in PKR/USD] (the "Principal Amount"), together with interest on the unpaid principal balance at the rate of [Insert Percentage]% per annum, calculated on a [Daily/Monthly] basis.

---

3. REPAYMENT TERMS

The Principal Amount and accrued interest shall be payable in full on [Maturity Date] (the "Due Date"). Payment shall be made via [Bank Transfer/Crossed Cheque/Pay Order] to the Payee’s designated bank account:

• Account Name: [Name]
• Account Number: [Number]
• Bank: [Bank Name & Branch]

---

4. LATE PAYMENT AND DEFAULT

In the event the Maker fails to make any payment due under this Note on or before the Due Date, such failure shall constitute an "Event of Default." Upon an Event of Default:

1. The entire outstanding Principal Amount, plus all accrued and unpaid interest, shall become immediately due and payable without demand or notice.
2. The Maker shall pay default interest at the rate of [Insert Percentage]% per annum on the overdue amount from the Due Date until the date of actual payment.
3. The Maker shall be liable for all costs of collection, including reasonable attorney’s fees incurred by the Payee in enforcing this Note.

---

5. PREPAYMENT

The Maker reserves the right to prepay the Principal Amount in whole or in part at any time without penalty, provided that all accrued interest up to the date of such prepayment is paid in full.

---

6. WAIVERS

The Maker hereby waives presentment, notice of dishonor, protest, and all other demands or notices in connection with the delivery, acceptance, performance, default, or enforcement of this Note. No failure or delay by the Payee in exercising any right under this Note shall operate as a waiver thereof.

---

7. GOVERNING LAW AND DISPUTE RESOLUTION

This Note shall be governed by and construed in accordance with the laws of the Islamic Republic of Pakistan. Any dispute arising out of or in connection with this Note, including any question regarding its existence, validity, or termination, shall be subject to the exclusive jurisdiction of the competent courts in [Insert City, e.g., Karachi/Lahore].

---

8. MISCELLANEOUS

• Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements.
• Severability: If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable.
• Amendments: No amendment or modification to this Note shall be valid unless in writing and signed by both parties.

---

9. EXECUTION

FOR MAKER (BORROWER): Signature: _____________________________________ Printed Name: [Name] CNIC/Passport No: [Number] Date: [Date]

FOR PAYEE (LENDER): Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Company: [Company Legal Name] Date: [Date]

---

STEP-BY-STEP EXECUTION & FILING GUIDE

1. Drafting: Copy the text above into a word processor. Replace all bracketed [ ] fields with the accurate legal information. Ensure the amounts are written in both figures and words to prevent ambiguity.
2. Stamp Duty: Under Pakistani law, Promissory Notes are subject to Stamp Duty as prescribed by the Stamp Act, 1899 (as amended by the respective provincial assemblies). You must purchase the appropriate value of non-judicial stamp paper from the local District Treasury or authorized stamp vendor. The Note must be printed on this stamp paper.
3. Verification: Verify the identity of the Maker by retaining a clear, attested copy of their CNIC (Computerized National Identity Card) or Passport. Ensure the Payee’s signatory has a valid Board Resolution (if a company) authorizing them to sign such instruments.
4. Execution: Ensure all parties sign in blue ink. If digital, use a PKI-compliant service (such as DocuSign or an equivalent service compliant with the Electronic Transactions Ordinance, 2002 of Pakistan).
5. Record Retention: The original executed document must be kept by the Payee in a secure, fireproof location. It is recommended to create a scanned, timestamped PDF copy for digital archiving.
6. Notarization: While not strictly required for a Promissory Note, having the signature notarized by a Public Notary adds an extra layer of authentication, which is highly recommended for cross-border or high-value transactions.