Promissory Note Template Malaysia

PROMISSORY NOTE (UNSECURED / SECURED)

Document ID: PN-MY-[YYYYMMDD]-[001]
Effective Date: [Date]
Version: 1.0
Governing Jurisdiction: Malaysia

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LEGAL DISCLAIMER

This document is a template prepared for general informational purposes under the laws of Malaysia. It does not constitute formal legal advice. Use of this document does not create an attorney-client relationship. Given the complexity of the Contracts Act 1950 and the Stamp Act 1949 in Malaysia, it is strongly recommended that this document be reviewed by legal counsel and adjudicated by the Inland Revenue Board of Malaysia (LHDN) for stamping to ensure full evidentiary weight in Malaysian courts.

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1. PARTIES

MAKER: [Name of Borrower/Company], a company incorporated under the laws of Malaysia with Company Registration Number [Reg No] and having its registered office at [Address] (hereinafter "Maker").

PAYEE: [Name of Lender/Company], a company incorporated under the laws of Malaysia with Company Registration Number [Reg No] and having its registered office at [Address] (hereinafter "Payee").

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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 MYR] (the "Principal Amount"), together with interest on the unpaid principal balance at the rate of [Percentage]% per annum.

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3. REPAYMENT TERMS

The Principal Amount and accrued interest shall be payable in [Number] monthly installments of [Amount in MYR] each, commencing on [Start Date] and continuing on the same day of each subsequent month until [End Date] (the "Maturity Date"), at which time the entire remaining balance of the Principal Amount and accrued interest shall be due and payable in full.

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4. DEFAULT AND ACCELERATION

If the Maker fails to make any payment when due, or if the Maker becomes insolvent, files for bankruptcy, or breaches any material covenant contained herein, the Payee may, at its option, declare the entire unpaid Principal Amount and all accrued interest immediately due and payable without further notice or demand.

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5. INTEREST ON OVERDUE PAYMENTS

Any amount not paid when due under this Note shall bear interest at the rate of [Percentage]% per annum from the date of default until the date of actual payment, calculated on a daily basis.

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6. PREPAYMENT

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

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7. GOVERNING LAW AND JURISDICTION

This Note shall be governed by and construed in accordance with the laws of Malaysia. The parties hereby submit to the exclusive jurisdiction of the courts of Malaysia for the resolution of any disputes arising out of or in connection with this Note.

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8. MISCELLANEOUS

1. Waiver: No failure or delay by the Payee in exercising any right under this Note shall operate as a waiver thereof.
2. Severability: If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable.
3. Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior understandings.
4. Stamp Duty: The Maker shall be responsible for the payment of all applicable stamp duties in accordance with the Stamp Act 1949 of Malaysia.

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9. EXECUTION

FOR [MAKER NAME]: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Company: [Company Legal Name] Date: [Date]

FOR [PAYEE NAME]: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Date: [Date]

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STEP-BY-STEP EXECUTION & FILING GUIDE

1. Drafting: Replace all bracketed text [...] with specific legal details. Ensure company names match the records held by the Companies Commission of Malaysia (SSM).
2. Verification: Obtain a Board Resolution from the Maker authorizing the signatory to enter into this debt obligation.
3. Stamping (Critical): Under the Stamp Act 1949, promissory notes must be stamped to be admissible as evidence in Malaysian courts. Submit the executed document via the LHDN STAMPS portal within 30 days of execution to avoid late penalties.
4. Digital Signature: If using DocuSign or Adobe Sign, ensure the platform is set to "eIDAS" or equivalent compliant standards. Ensure all signatories utilize a verified digital certificate or a clear, legally witnessed signature process.
5. Record Retention: Store the original stamped hard copy in a secure, fireproof repository. Digital copies should be maintained in an encrypted document management system with restricted access permissions.