What is it and why use it

A security promissory note is a document issued by a debtor to a creditor to secure an obligation.
It does not mean immediate payment, but it can be used if the original obligation is not fulfilled.

Legal basis

Based on Czech law – Act No. 191/1950 Coll., Bills of Exchange and Cheques Act

When to use it

• to secure loan repayments

• to support an instalment agreement

• to ensure performance under contract

• as a pre-litigation enforcement tool

Caution

• Must include mandatory fields (amount, date, place, issuer)

• Should be accompanied by a security agreement / declaration

• Avoid signing blank or undated notes

• Improper use may lead to legal or criminal consequences

Practice tip

Do not confuse a promissory note with a payment guarantee.
Used correctly, it gives the creditor a fast-track to court and enforcement.

Template and declaration – symbolic fee

Czech-English bundle includes:
– promissory note for security
– side declaration explaining use
– usage instructions

Reach out via email or contact form – security with clarity.

FINAL THOUGHTS – WHAT NOW?

A promissory note for security isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.