Promissory Note Template Bc Canada

DEMAND PROMISSORY NOTE

Document ID: PN-BC-2026-V1
Effective Date: [Effective Date, e.g., October 1, 2026]
Governing Jurisdiction: Province of British Columbia and the federal laws of Canada applicable therein

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1. STATUTORY & LEGAL COMPLIANCE NOTICE

CRITICAL LEGAL NOTICE: This institutional-grade Promissory Note is drafted to conform with the general principles of contract law and the applicable statutes of the Province of British Columbia, Canada, including the Limitation Act, S.B.C. 2012, c. 13, and the Interest Act, R.S.C. 1985, c. I-15. This document constitutes a formal, binding financial instrument. Drafting, modifying, or executing financial instruments of this scale without direct counsel from a qualified corporate and commercial lawyer admitted to the Law Society of British Columbia carries inherent legal and financial risks. The user assumes all liability for the proper completion, execution, and enforcement of this instrument.

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2. PARTIES & RECITALS

FOR VALUE RECEIVED, the undersigned debtor, [Debtor Full Legal Name], having a principal residential/business address located at [Debtor Principal Address] (hereinafter designated as the "Maker"), hereby unconditionally promises to pay to the order of [Creditor Full Legal Name], having a principal residential/business address located at [Creditor Principal Address] (hereinafter designated as the "Holder"), the principal sum of [Amount in Canadian Dollars, e.g., FIFTY THOUSAND AND 00/100 CANADIAN DOLLARS ($50,000.00 CAD)], together with interest calculated in accordance with the terms set forth herein.

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3. EXHAUSTIVE OPERATIVE CLAUSES & LEGAL TERMS

Section 1. Principal Sum and Interest Rate

1.1 Principal Repayment: The Maker promises to pay to the order of the Holder the principal sum of [Amount in Canadian Dollars ($0.00 CAD)], in lawful money of Canada, on the terms and conditions set forth within this Promissory Note (the "Note"). 1.2 Interest Accrual: The principal balance outstanding under this Note from time to time shall bear interest at the rate of [Interest Rate, e.g., 8.0%] percent per annum, calculated [Select: annually / semi-annually / monthly] not in advance, both before and after maturity, default, and judgment, until the full indebtedness is paid in full. 1.3 Interest Calculation Basis: Whenever any interest is calculated under this Note on the basis of a year of 365 days, each daily rate of interest shall be determined by dividing the annual rate by 365.

Section 2. Repayment Terms and Method of Payment

2.1 Maturity / Demand Nature: This is a demand promissory note. The principal sum, together with all accrued and unpaid interest and any other charges or fees owing hereunder, shall be payable in full immediately upon the written demand of the Holder delivered to the Maker in accordance with the notice provisions of this Note (the "Demand Date"). 2.2 Installment Schedule (If Applicable): Notwithstanding Section 2.1, and provided no Event of Default has occurred, the Maker shall make amortized installment payments of principal and interest in the amount of [Installment Amount, e.g., $1,000.00 CAD] on the [Day, e.g., 1st] day of each and every calendar month, commencing on [Commencement Date, e.g., November 1, 2026], and continuing on the same day of each successive month thereafter until [Maturity Date, e.g., October 1, 2029] (the "Maturity Date"), at which time the entire remaining balance of principal and accrued interest shall be due and payable in full. 2.3 Method of Payment: All payments due under this Note shall be made in lawful money of Canada by wire transfer of immediately available funds to an account designated in writing by the Holder, or by certified cheque delivered to the Holder's address stated above, or as otherwise directed by the Holder from time to time. 2.4 Application of Payments: All payments made by the Maker under this Note shall be applied first to the payment of any collection costs, expenses, or late charges incurred by the Holder, second to the payment of accrued and unpaid interest, and third to the reduction of the principal balance.

Section 3. Prepayment Privileges

3.1 Right to Prepay: The Maker shall have the right to prepay the principal amount outstanding under this Note, in whole or in part, at any time and from time to time, without penalty or premium, provided that any such prepayment shall be accompanied by all accrued and unpaid interest on the principal amount so prepaid up to and including the date of such prepayment.

Section 4. Default and Acceleration

4.1 Events of Default: The occurrence of any one or more of the following events shall constitute an "Event of Default" under this Note: (a) Failure to Pay: The failure of the Maker to pay any installment of principal or interest, or the full balance upon demand, within [Grace Period, e.g., five (5)] business days of the date when due; (b) Breach of Covenants: The failure of the Maker to observe, perform, or comply with any other covenant, term, or condition contained in this Note, and the continuance of such failure for a period of ten (10) days after written notice thereof has been given by the Holder to the Maker; (c) Insolvency or Bankruptcy: The filing by or against the Maker of a petition in bankruptcy under the Bankruptcy and Insolvency Act (Canada), or the making of an assignment for the benefit of creditors, or the appointment of a receiver, receiver-manager, liquidator, or trustee for all or substantially all of the assets of the Maker, or the admission in writing of the Maker's inability to pay debts as they become due; (d) Execution or Seizure: The issuance of any writ of execution, garnishment, attachment, or similar process against any material asset of the Maker which is not released, bonded, or satisfied within thirty (30) days; (e) Misrepresentation: Any representation or warranty made by the Maker in connection with this Note proves to have been materially false or misleading when made. 4.2 Acceleration of Debt: Upon the occurrence of any Event of Default, and at any time thereafter during the continuance of such Event of Default, the Holder may, at its sole option, declare the entire unpaid principal balance of this Note, together with all accrued and unpaid interest and all other sums payable hereunder, to be immediately due and payable without presentment, demand, protest, or further notice of any kind, all of which are hereby expressly waived by the Maker.

Section 5. Default Interest and Collection Costs

5.1 Default Interest Rate: Following the occurrence of an Event of Default, or following a demand for payment under Section 2.1, or upon maturity, the overdue principal balance and, to the extent permitted by applicable law, overdue interest under this Note shall bear interest at the rate of [Default Interest Rate, e.g., 18.0%] percent per annum (the "Default Rate"), calculated and payable in the same manner as regular interest, until the default is fully cured or the indebtedness is paid in full. 5.2 Costs of Collection: The Maker promises to pay all costs and expenses incurred by the Holder in collecting or attempting to collect any amount due under this Note, or in enforcing any of the Holder's rights or remedies hereunder, including, without limitation, reasonable legal fees and disbursements on a solicitor-and-own-client basis, collection agency fees, and court costs.

Section 6. Waivers and Consents

6.1 Waiver of Presentment and Notice: The Maker, and all endorsers, sureties, guarantors, and other parties who may now or hereafter become liable for all or any part of the obligations evidenced by this Note, severally waive presentment for payment, demand, protest, notice of protest, notice of dishonour, notice of acceleration, notice of intent to demand or accelerate, and all other notices or demands in connection with the delivery, acceptance, performance, default, or enforcement of this Note. 6.2 Extension and Release: No release of any security for this Note, no extension of the time for the payment of this Note or any installment hereof, no release of any party liable hereon, and no indulgence granted by the Holder shall operate to release, discharge, modify, change, or affect the liability of the Maker or any other party primarily or secondarily liable hereon.

Section 7. Representations and Warranties

7.1 Maker Representations: The Maker represents and warrants to the Holder that: (a) Capacity and Authority: If the Maker is a corporation, partnership, or other legal entity, it is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation/formation and has all requisite corporate power and authority to execute, deliver, and perform its obligations under this Note; if the Maker is an individual, he or she has full legal capacity and competence to enter into this Note; (b) Binding Obligation: This Note constitutes the legal, valid, and binding obligation of the Maker, enforceable against the Maker in accordance with its terms; (c) No Conflict: The execution, delivery, and performance of this Note do not and will not violate, conflict with, or constitute a default under any provision of any existing law, rule, regulation, court order, or any agreement or instrument to which the Maker is a party or by which the Maker or its assets are bound.

Section 8. Governing Law and Jurisdiction

8.1 Applicable Law: This Note, and all claims, disputes, or causes of action (whether in contract, tort, or statute) based upon, arising out of, or relating to this Note or the negotiation, execution, or performance hereof, shall be governed by, and enforced in accordance with, the internal laws of the Province of British Columbia and the federal laws of Canada applicable therein, without regard to its conflict of laws principles. 8.2 Attornment to Jurisdiction: Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the Courts of the Province of British Columbia, sitting in the City of Vancouver, for the resolution of any dispute arising out of or relating to this Note. Each party waives any objection to the laying of venue of any such action or proceeding in such courts and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

Section 9. Miscellaneous Provisions

9.1 Severability: If any provision of this Note is held to be invalid, illegal, or unenforceable by any court of competent jurisdiction, such provision shall be severed from this Note and the remaining provisions shall remain in full force and effect to the maximum extent permitted by law, provided that the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. 9.2 Entire Agreement: This Note constitutes the final, complete, and exclusive statement of the agreement between the Maker and the Holder with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings, negotiations, representations, and agreements, whether written or oral. 9.3 Amendments and Waivers: No amendment, modification, waiver, or discharge of any provision of this Note shall be valid unless the same is in writing and signed by both the Maker and the Holder. No failure or delay by the Holder in exercising any right, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. 9.4 Assignment: This Note shall be binding upon and enure to the benefit of the Maker and the Holder and their respective heirs, executors, administrators, successors, and permitted assigns. The Maker may not assign or transfer its obligations under this Note, in whole or in part, without the prior written consent of the Holder. The Holder may assign, negotiate, or pledge this Note, in whole or in part, at any time without the consent of the Maker. 9.5 Time of the Essence: Time shall be of the essence of this Note and of every part hereof. 9.6 Interpretation: Headings used in this Note are for convenience of reference only and shall not affect the interpretation or construction of any provision. Words in the singular include the plural and vice versa, and words importing gender include all genders. References to statutes include all regulations enacted thereunder and any subsequent amendments or replacements.

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4. EXECUTION & FORMAL SIGNATURE BLOCKS

IN WITNESS WHEREOF, the Maker has executed this Promissory Note under seal as of the Effective Date first written above.

FOR THE MAKER ([Debtor Full Legal Name]):

Signature: _____________________________________
Printed Name: [Authorized Signatory Name / Maker Name]
Title: [Title / Role, e.g., Sole Proprietor / Director]
Address: [Principal Address]
Date: [Date of Execution]

Signed, Sealed, and Delivered in the presence of:

Witness Signature: ______________________________
Witness Printed Name: __________________________
Witness Address: _______________________________
Witness Occupation: ____________________________

FOR THE HOLDER ([Creditor Full Legal Name]):

Signature: _____________________________________
Printed Name: [Authorized Signatory Name / Creditor Name]
Title: [Title / Role, e.g., Managing Director / Individual]
Address: [Principal Address]
Date: [Date of Execution]

Signed, Sealed, and Delivered in the presence of:

Witness Signature: ______________________________
Witness Printed Name: __________________________
Witness Address: _______________________________
Witness Occupation: ____________________________

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5. STEP-BY-STEP EXECUTION & FILING GUIDE

1. Document Review and Completion: Open the template in Microsoft Word or Google Docs. Locate all bracketed placeholders (e.g., [...]) and replace them with accurate, verified legal names, physical addresses, numerical sums, interest rates, and calendar dates. Ensure all financial figures match both numerically and textually where applicable.
2. Signatory Verification:
   • If the Maker or Holder is a corporation registered in British Columbia, verify via the BC Corporate Registry (Corporate Online) that the individual signing on behalf of the entity possesses actual authority (e.g., Director, Authorized Signatory) to bind the corporation.
   • If executing as an individual, ensure the full legal name matches government-issued identification.
3. Formal Execution (Wet-Ink or Digital):
   • Wet-Ink Execution: Print two identical hard copies of the finalized document. Both the Maker and the Holder must sign and seal the documents in the physical presence of independent witnesses, who must also sign the witness attestation blocks.
   • Digital Execution: Upload the finalized PDF to an institutional digital signature platform (such as DocuSign or Adobe Sign) configured with audit trails compliant with the Personal Information Protection and Electronic Documents Act (PIPEDA) and BC's Electronic Transactions Act. Ensure multi-factor authentication or certificate-based digital IDs are enabled for verification.
4. Record Retention: Store the fully executed original instrument in a secure, fireproof corporate vault or encrypted digital document management system. Retain the executed agreement for a minimum of seven (7) years following full repayment, discharge, or the expiration of the provincial limitation period under the British Columbia Limitation Act.