Mississippi Promissory Note and Pledge Agreement regarding loan and grant of security interest in shares of the company's common stock

• Category: Corporations - Public - Pledge
• State: Multi-State
• Control #: US-EG-9329
• Format: Word; Rich Text

Description

Promissory Note and Pledge Agreement between iPrint.Inc. and James P. McCormick regarding loan and grant to company a security interest in shares of the company's common stock dated October 13, 1999. 3 pages. The Mississippi Promissory Note and Pledge Agreement is a legally binding document that outlines the terms and conditions associated with a loan and the grant of a security interest in shares of a company's common stock as collateral. This agreement serves as a critical component in securing the lender's rights and protecting the borrower's obligations. Keywords: Mississippi, Promissory Note, Pledge Agreement, loan, grant, security interest, shares, common stock, collateral. There are two types of Mississippi Promissory Note and Pledge Agreements that pertain to loans and the grant of security interest in shares of a company's common stock: 1. Mississippi Secured Promissory Note and Pledge Agreement: This agreement outlines the terms and conditions of a loan where the borrower pledges shares of the company's common stock as collateral. It designates the lender as the secured party, holding a security interest in the shares until the loan is repaid. 2. Mississippi Convertible Promissory Note and Pledge Agreement: This agreement combines the loan aspect with the possibility of converting the borrowed amount into equity. It allows the lender to convert the loan into shares of the company's common stock, making the shareholding the collateral for the loan. Both types of agreements commonly include the following key provisions: a) Loan terms: This section specifies the principal amount, interest rate, repayment schedule, late payment penalties, and any other relevant loan terms. b) Pledge of Shares: The borrower pledges a specific number or percentage of shares of the company's common stock as collateral to secure the loan. The agreement includes the details of the pledged shares and how they will be held in escrow or under the lender's control. c) Grant of Security Interest: It outlines the agreement to grant the lender a security interest in the pledged shares, ensuring that the lender has legal rights and priority in case of default or non-payment by the borrower. d) Representations and Warranties: Both parties provide certain assurances regarding their authority to enter into the agreement, ownership of the shares, and absence of any encumbrances on the shares. e) Events of Default: This section defines various events that, if triggered, can lead to the lender declaring immediate repayment. It typically includes non-payment, breach of covenants, and insolvency or bankruptcy of the borrower. f) Remedies: The agreement outlines the actions the lender can take in case of default, such as seizing and selling the pledged shares, pursuing legal remedies, or applying any rights specified in the agreement. It is crucial for both the borrower and lender to carefully review and understand the terms and obligations outlined in the Mississippi Promissory Note and Pledge Agreement before signing it. Seeking legal advice is highly recommended ensuring compliance with state laws and to tailor the agreement to specific circumstances.

The Mississippi Promissory Note and Pledge Agreement is a legally binding document that outlines the terms and conditions associated with a loan and the grant of a security interest in shares of a company's common stock as collateral. This agreement serves as a critical component in securing the lender's rights and protecting the borrower's obligations. Keywords: Mississippi, Promissory Note, Pledge Agreement, loan, grant, security interest, shares, common stock, collateral. There are two types of Mississippi Promissory Note and Pledge Agreements that pertain to loans and the grant of security interest in shares of a company's common stock: 1. Mississippi Secured Promissory Note and Pledge Agreement: This agreement outlines the terms and conditions of a loan where the borrower pledges shares of the company's common stock as collateral. It designates the lender as the secured party, holding a security interest in the shares until the loan is repaid. 2. Mississippi Convertible Promissory Note and Pledge Agreement: This agreement combines the loan aspect with the possibility of converting the borrowed amount into equity. It allows the lender to convert the loan into shares of the company's common stock, making the shareholding the collateral for the loan. Both types of agreements commonly include the following key provisions: a) Loan terms: This section specifies the principal amount, interest rate, repayment schedule, late payment penalties, and any other relevant loan terms. b) Pledge of Shares: The borrower pledges a specific number or percentage of shares of the company's common stock as collateral to secure the loan. The agreement includes the details of the pledged shares and how they will be held in escrow or under the lender's control. c) Grant of Security Interest: It outlines the agreement to grant the lender a security interest in the pledged shares, ensuring that the lender has legal rights and priority in case of default or non-payment by the borrower. d) Representations and Warranties: Both parties provide certain assurances regarding their authority to enter into the agreement, ownership of the shares, and absence of any encumbrances on the shares. e) Events of Default: This section defines various events that, if triggered, can lead to the lender declaring immediate repayment. It typically includes non-payment, breach of covenants, and insolvency or bankruptcy of the borrower. f) Remedies: The agreement outlines the actions the lender can take in case of default, such as seizing and selling the pledged shares, pursuing legal remedies, or applying any rights specified in the agreement. It is crucial for both the borrower and lender to carefully review and understand the terms and obligations outlined in the Mississippi Promissory Note and Pledge Agreement before signing it. Seeking legal advice is highly recommended ensuring compliance with state laws and to tailor the agreement to specific circumstances.