May 15, 2018For businesses to operate efficiently, money needs to be able to change hands easily, like cash. However, businesses also need to be sure that they will have a legal claim to be repaid the money if things don’t go smoothly, something that contracts typically provide.
May 15, 2018Sam owns a hardware store, and needs to buy 100 barbeque grills from Janet for a total of $40,000. He can’t afford the payment upfront although he can pay in eight instalments of $5,000 per month plus 10% annual interest. Janet needs to make the sale, but really needs the cash within the month to pay off one of her suppliers, Lee. At the outset, it seems like Sam and Janet’s interests are at odds and they might have a hard time forming a contract... were it not for the existence of the promissory note.
May 15, 2018This article posted on our partner site Mondaq.com discusses the Wisconsin case RMS Residential Properties, LLC v Anna M. Miller in which the court decided that possession of a promissory note raises a rebuttable presumption that the holder of the note is the owner of the debt.
May 15, 2018This article posted on our partner site Mondaq.com deals with foreclosure actions in Maine and the apparent limitation of the ability of MERS (Mortgage Electronic Research System) to assign more than the right to record the mortgage as nominee.
May 15, 2018This article posted on our partner site Mondaq.com discusses the common features of convertible promissory notes, including discounts and caps.
May 15, 2018This article posted on our partner site Mondaq.com discusses an Ontario court decision that promissory notes are securities under the Ontario Securities Act, unless they are more akin to the types of notes considered to not be securities, using the 'family resemblance test'.
May 15, 2018This article posted on our partner site Mondaq.com discusses a US bankruptcy court decision which determine that promissory notes can be re-characterized as equity.
May 15, 2018This article posted on our partner site Mondaq.com discusses an Illinois court decision which determined that providing the interest rate and maturity date of a mortgage by reference to a promissory note was valid.
May 15, 2018This article posted on our partner site Mondaq.com discusses a court decision from the 9th circuit (U.S.) dealing with the question of whether the stated higher rate of post-default interest would be enforceable.
May 15, 2018This article posted on our partner site Mondaq.com deals with the use of e-signatures used in documents. Specific documents still require written signatures such as promissory notes, which are governed by the Bills of Exchange Act (BEA).
May 15, 2018This article posted on our partner site Mondaq.com deals with the potential dangers of accepting offers of promissory notes that expire within a certain (short term) period.
May 15, 2018This article posted on our partner site Mondaq.com deals with the classification of promissory notes as securities in Ontario law. The court considered the U.S. Supreme Court test of 'family resemblance' in distinguishing which promissory notes are securities or other instruments.
May 15, 2018This article posted on our partner site Mondaq.com discusses an Ontario Court of Justice decision which dealt with the definition and interpretation of 'security' under the Securities Act, R.S.O. 1990, c. S.5.
May 15, 2018This article posted on our partner site Mondaq.com discusses an Alabama Supreme Court decision that held that the assignee of a lost promissory note was entitled to rely on a lost note affidavit to enforce its claim against the maker of the note.
May 15, 2018This article posted on our partner site Mondaq.com deals with the risk in promissory notes. To manage the risk of a demand for payment by a third party on your financial promise, seek legal advice in drafting the note, and understand the implications if the note is negotiable.
June 01, 2017The legal remedies available under assignment are not extinguished even if legal action has been taken under a promissory note dealing with the same obligation, so long as the debt continues to exist. See instant case of Rafael v. Allison 1987 CanLII 3232 (AB QB).
April 06, 2017Promissory notes can be used whenever one person owes another person money, and the person who is to receive the money wants some security that the money will be paid.
September 09, 2016When entering into an important contract, take the time to discuss with your business partners, advisors and legal counsel, to make sure that you are clear about your opportunities and risks. In this article, we describe four simple steps to follow to make sure that your interests are protected when negotiating an agreement.