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The Simple Interest Promissory Note is a crucial financial document utilized in the Philippine jurisdiction when one party (the lender) extends a loan to another party (the borrower) with interest calculated only on the principal amount. This document is commonly used in both personal and business contexts, particularly when transparency and straightforward interest calculations are preferred. It must comply with Philippine laws, including the Civil Code of the Philippines, the Truth in Lending Act, and Central Bank regulations. The document typically includes essential elements such as the principal amount, interest rate, payment terms, default provisions, and parties' information. It's particularly useful for structured loans where the parties want to avoid compound interest complications and prefer clear, simple terms of repayment.

1. Parties: Identification of the Lender and Borrower with complete legal names and addresses

2. Background: Brief context of the loan agreement and relationship between parties

3. Definitions: Key terms used in the document including 'Principal Amount', 'Interest Rate', 'Maturity Date', and 'Event of Default'

4. Promise to Pay: Clear statement of the borrower's promise to pay the principal amount plus interest

5. Principal Amount: Specification of the loan amount in numbers and words

6. Interest Rate: Statement of the simple interest rate and calculation method

7. Payment Terms: Schedule of payments, including due dates and payment methods

8. Default and Acceleration: Conditions constituting default and lender's right to accelerate payment

9. Representations and Warranties: Borrower's assertions regarding legal capacity and authority to enter into the agreement

10. Governing Law: Specification that Philippine law governs the promissory note