Kings New York Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: Kings
• Control #: US-ENTREP-004-2
• Format: Word; Rich Text

Description

"An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. New start-up companies often turn to the private equity market for seed money because the formal equity market is reluctant to fund risky undertakings. In addition to their willingness to invest in a start-up, angel investors may bring other assets to the partnership. They are often a source of encouragement; they may be mentors in how best to guide a new business through the start-up phase and they are often willing to do this while staying out of the day-to-day management of the business. Term sheet is a non-binding agreement setting forth the basic terms and conditions under which an investment will be made." The King's New York Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions for an agreement between an investor (the angel fund) and a borrower (the recipient of the funds). This term sheet serves as a basis for establishing a promissory note, which is a written promise to repay a specified amount of money within a certain period. The Kings New York Angel Fund Promissory Note Term Sheet typically consists of several sections that cover various aspects of the lending arrangement. These sections include: 1. Parties involved: This section provides the names and contact details of both the investor (angel fund) and the borrower. It clearly defines the parties' roles and responsibilities in the agreement. 2. Loan amount and disbursement: Here, the specific amount of money that the borrower is requesting from the angel fund is stated. Additionally, it outlines the disbursement terms, such as whether the loan will be provided in a lump sum or in installments. 3. Repayment terms: This crucial section defines the repayment schedule, including the frequency and method of repayments. It also includes the interest rate that will be applied to the loan and any additional fees, such as late payment penalties. 4. Collateral and security: If any collateral or security is required for the loan, this section outlines the assets or property that will serve as security in case of default. It specifies the terms under which the angel fund can exercise its right to claim the collateral. 5. Default and remedies: This section details the consequences of borrower default and the remedies available to the angel fund. It may include actions such as accelerating the loan and pursuing legal action to recover the outstanding amount. As for the different types of Kings New York Angel Fund Promissory Note Term Sheets, they can vary based on the specific requirements of the funding arrangement or the industry involved. For instance, there might be term sheets tailored for startups, real estate investments, or small business loans. Each type of term sheet would prioritize different terms and conditions relevant to their respective industry or loan purpose.

The King's New York Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions for an agreement between an investor (the angel fund) and a borrower (the recipient of the funds). This term sheet serves as a basis for establishing a promissory note, which is a written promise to repay a specified amount of money within a certain period. The Kings New York Angel Fund Promissory Note Term Sheet typically consists of several sections that cover various aspects of the lending arrangement. These sections include: 1. Parties involved: This section provides the names and contact details of both the investor (angel fund) and the borrower. It clearly defines the parties' roles and responsibilities in the agreement. 2. Loan amount and disbursement: Here, the specific amount of money that the borrower is requesting from the angel fund is stated. Additionally, it outlines the disbursement terms, such as whether the loan will be provided in a lump sum or in installments. 3. Repayment terms: This crucial section defines the repayment schedule, including the frequency and method of repayments. It also includes the interest rate that will be applied to the loan and any additional fees, such as late payment penalties. 4. Collateral and security: If any collateral or security is required for the loan, this section outlines the assets or property that will serve as security in case of default. It specifies the terms under which the angel fund can exercise its right to claim the collateral. 5. Default and remedies: This section details the consequences of borrower default and the remedies available to the angel fund. It may include actions such as accelerating the loan and pursuing legal action to recover the outstanding amount. As for the different types of Kings New York Angel Fund Promissory Note Term Sheets, they can vary based on the specific requirements of the funding arrangement or the industry involved. For instance, there might be term sheets tailored for startups, real estate investments, or small business loans. Each type of term sheet would prioritize different terms and conditions relevant to their respective industry or loan purpose.