Promissory Note
Amount: CAD 12,000
Date: 7 November 2026
Place: Toronto
1. The promise
1.1 For value received on 1 December 2026, I, Daniel Okafor, of 27 Maple Street, Toronto, Canada ("the Borrower"), promise to pay Grace Mensah, of 92 Birch Avenue, Toronto, Canada ("the Lender"), or anyone to whom the Lender transfers this note, the sum of CAD 12,000 ("the Loan"), together with interest as set out below.
1.2 The whole unpaid balance, with any interest and charges due, will be paid in full no later than 1 December 2028 ("the Final Date").
1.3 Ruth Okafor, of 27 Maple Street, Toronto, Canada ("the Co-signer") also signs this note and is bound together with the Borrower, so that the Lender may ask either of them to pay the whole amount due.
2. Interest
Interest: 4% a year on the unpaid balance, or none
If no interest is written above, the Loan carries no interest. If any interest or charge under this note would be more than the law allows, it is reduced to the highest lawful amount.
3. Repayment
In 24 equal monthly payments of CAD 521, on the 1st of each month, starting 1 January 2027.
Payments are made: By bank transfer to the lender's account, details sent separately. Each payment is applied first to charges, then to interest, then to the Loan. Where a payment date is not a working day, the payment is due on the next working day. The Borrower pays in full, without set-off or deduction.
4. Early repayment
The Borrower may repay all or part of the Loan at any time without penalty. Interest stops on the part repaid. An early payment is applied to the payments last due, unless the Lender agrees otherwise in writing.
5. Late payment
A late charge of CAD 25 for any payment more than 10 days late
6. Default
6.1 The Borrower is in default if the Borrower does not pay an amount when due and does not put this right within 14 days of written notice from the Lender, or if the Borrower becomes bankrupt or insolvent or makes an arrangement with creditors.
6.2 If the Borrower is in default, the Lender may demand the whole unpaid balance at once, with interest and charges due. The Borrower will also pay the Lender's reasonable costs of collecting it, where the law allows.
7. Security
The Borrower's car, a 2020 Honda Civic, VIN 2HGFC2F59LH000000, is pledged as security.
If no security is written above, this note is unsecured.
8. Waiver
To the extent the law allows, the Borrower and any Co-signer waive presentment for payment, protest, notice of protest and notice of non-payment. The Lender does not lose a right by delaying to use it, and a waiver by the Lender is valid only in writing and for that occasion.
9. Statement of the Borrower
The Borrower states that the Borrower is an adult with the legal capacity to sign this note, has read it, has understood it, and has had the chance to take advice before signing. The Borrower states that the Loan has been received on the date given in section 1.1, and that the information the Borrower gave about the ability to repay is true. The Borrower will tell the Lender in writing within 14 days of any change of address while the Loan is unpaid.
10. General
10.1 This note is the whole agreement about the Loan. It may be changed only in writing signed by the Borrower and the Lender, and by any Co-signer if the change affects the Co-signer.
10.2 The Lender may transfer this note. The Borrower may not transfer the Borrower's duties under it. If any part of this note cannot be enforced, the rest still applies.
10.3 Notices are in writing and go to the address of the other party in this note, or to a new address given in writing.
10.4 The Borrower will pay any stamp duty or tax that the law places on this note, unless the law requires the Lender to pay it. Each party pays its own costs of preparing this note.
10.5 A copy of this note that is signed and sent electronically is as effective as an original, where the law allows it. If the original is lost, the Borrower will sign a replacement on the same terms at the Lender's request.
10.6 The Lender will mark this note as paid and return it to the Borrower when the Loan is repaid in full.
11. Governing law and disputes
The parties will first try to settle any dispute by discussing it in good faith for 30 days after one of them gives written notice of it.
This note, and any dispute that arises from it, is governed by the law of Ontario, Canada. The place for deciding any dispute under this note is Toronto. How disputes are decided
Signatures
The Borrower: Daniel Okafor
Signature: ______________
Date: ______________
The Co-signer: Ruth Okafor, of 27 Maple Street, Toronto, Canada, signature ______________, date ______________
The Lender: Grace Mensah
Signature: ______________
Date: ______________
Witness: Priya Nair
Address: 14 Cedar Court, Toronto, Canada
Signature: ______________