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The Simple Promissory Note For Family Loan is designed for situations where one family member wishes to lend money to another in a formal, legally documented manner under Canadian law. This document is particularly useful when significant sums are involved or when parties want to ensure clear terms and avoid future disputes or misunderstandings. It includes essential elements such as loan amount, repayment terms, interest rates (if applicable), and consequences of default, while maintaining simplicity appropriate for family transactions. The document helps distinguish the transaction as a loan rather than a gift for tax purposes and provides protection for both the lender and borrower. It's commonly used in situations ranging from helping family members with home purchases to education expenses or business ventures, while ensuring compliance with Canadian federal and provincial lending regulations.

1. Parties: Identifies the Lender and Borrower with their full legal names and addresses

2. Promise to Pay: States the principal amount being borrowed and the borrower's unconditional promise to repay

3. Interest Rate: Specifies the interest rate (if any) and how it will be calculated

4. Payment Terms: Details of how and when payments will be made, including payment schedule and final payment date

5. Place of Payment: Specifies where or how payments should be made

6. Default: Defines what constitutes a default and its consequences

7. Governing Law: Specifies that the note is governed by Canadian law and the applicable province

8. Signatures: Space for dated signatures of both parties and witnesses if required