Promissory Note to comply with Requirements

Sample Promissory Note to Comply with Requirements

In any production unit or manufacturing plant, there are hundreds and even thousands of workers and employees working. Because it’s very important to ensure the safety of the workers and the products being made under strict rules and regulations, customers and clients send third-party evaluators and inspectors to check the production units randomly. During their visit, these inspectors evaluate all the areas that are important for compliance purposes and they prepare a report at the end. This report is shared with the production facility and the client and it shows which areas need improvements, which factors are clearly against the compliance regulations, and what the production unit should do to show improvements. In return for this report, the unit issues a promissory note to comply with requirements.

Importance of Promissory Note to comply with Requirements:

Global customers and clients place their orders with companies where compliance rules and regulations are followed. For instance, a garment buyer who is getting men’s jeans from China finds out that the production unit is using the unsafe sandblasting technique to create designs on the jeans. This is really harmful to the employees and workers. They immediately issue a notice to the production unit explaining the situation and ask them to change the technique and move to some option that is safer and better. In return, the factory or company sends a promissory note to comply with requirements. This is a formal way of saying that the factory is willing to make necessary changes and implement new rules and regulations.

This is just an example of how clients work with global manufacturers. Actually, a multinational company has a compliance department of their own that takes great care of these health and safety issues. When an auditor comes for a compliance visit, they meet with the internal compliance and they both conduct the inspection inside the premises. During their visit, lots of areas and elements are inspected including the working environment, safety of the employees, health concerns, emergency situation planning, safety drills and the behavior of the employees with each other. If there are females working in the factory, harassment is a big issue which is discussed during the inspection.

It’s always possible that there are some concerns that the auditor raises and the rating of the production unit is put on hold. By putting the rating on hold means that the factory won’t receive any production order from the client until the improvements are shown to the auditor and the rating is specified to A grade, B grade or C grade. Meanwhile the factory makes necessary changes in the facility, they write a promissory note to the client and the inspector stating that they have started taking final steps to implement the changes and get the facility ready for inspection in the near future.

Key elements of Promissory Note to comply with Requirements:

  • Name of the recipient of the letter
  • Name and other details of the person writing the letter
  • Date of writing the promissory note
  • Subject stating the reason of writing the note
  • Formal reference to the previous discussion/meeting
  • Details of the issues raised by the individual
  • Valid steps taken to show improvement and compliance with requirements
  • Further steps that will be taken in the future for improvements
  • Details of the next visit to check the improvements

Sample Promissory Note to comply with Requirements

 

Jacob Reynolds

Manager Compliance

Sigma Compliance Auditing

Date: 14th December, 2021

 

Subject: promissory note to comply with requirements

 

Dear Mr. Reynolds,

I hope you are doing well. I am writing this letter in response to your notification about our production unit not following the compliance terms and conditions. I hereby ensure you that we will comply with the requirements as per provided guidelines.

During your inspection of our production facility last week, you pointed out a few elements that should be corrected before we get the A grade from your company to continue the production. I have discussed these points with our internal compliance department and we have made solid plans to comply with the requirements. This promissory note to comply with requirements actually explains how we are planning to tackle the problems and issues within our premises.

The first issue that you raised was to found outside people and guests inside the factory premises without any identification ID. Upon investigating, it was revealed that our receptionist had limited supply of the guest IDs and the guests who couldn’t get an ID were allowed to enter the factory premises for a limited period of time. We have ordered excess number of these IDs and hopefully from next week forward, all the guests will be logged-in at the reception properly.

Another issue that you found was that number of machine operators weren’t wearing safety helmets and goggles. This is a very serious safety concern that we have discussed with the compliance department and supervisors of production unit and they have ensured us that no operator will be allowed to operate a machine without safety precautions. Related to this, there weren’t enough hand sanitizer stations at the entrance of the facility and we have already installed 6 more stations so all the employees can sanitize more often while working inside the factory. In addition to these, all the employees are required to get vaccination and keep their vaccine certificate with them all the time.

Further issues included first aid box being locked and the person with the key was outside of the factory for office work, emergency exit door not opening properly in the production unit II, bathroom floors had slippery tiles and moisture which could cause a serious injury to the employees and people not wearing masks and sitting too close to each other in the production unit. You will be pleased to know that all these issues are resolved now and hopefully you will see lots of improvements during your next visit.

Once you find this promissory note to comply with requirements and you think there is something else that is essential to implement or change, please let us know.

 

Regards

Simon Jefferson

General Manager Production

Lenten Textile Corporation

Sample promissory note for delayed payments

Sample Promissory Note for Delayed Payments

From time to time, we go to credit companies and banks for requesting a loan. This process can take some time because the bank first verifies that the applicant has good financial value and has enough assets to return the loan payment with interest rate and then the documentation starts, approvals are gathered from various departments, and then the loan amount is transferred to the applicant. Before accepting the loan payment, the individual signs an agreement with the bank where all the terms and conditions are written including the interest rate, monthly installments, and duration to return the loan. In case the loan is not returned and the bank wants to foreclose the pledged asset, the individual can write a promissory note for delayed payment to the bank. This is a simple document where the individual explains his or her situation and promises to pay the loan in near future.

Importance of Promissory Note for Delayed Payments:

There can be many reasons for asking for a loan. For instance, an individual can ask for a loan to pay for his studies while another person can ask for a loan to pay for medical expenses, to buy a car, to rent an apartment, or to aid a bankrupt business. No matter what the reason is, some specific terms and conditions are discussed with each applicant before their loan request is approved. One of the common reasons for writing these terms and conditions is that if the individual fails or denies repaying the loan, the bank has the right to seize the pledged property or item i.e. jewelry, stocks, shares, etc., and sell them through auction to recover their amount.

If such a situation occurs, the individual has no right or control over the circumstances and he can either pay the loan back to the bank or watch his property being auctioned away for recovery. Taking legal action in this situation is never the right choice or a possibility. Instead, writing a promissory note to the bank, explaining your situation, and requesting them to give you some more time to pay back the loan amount can result in better handling of these situations. In this promissory note for delayed payment, the applicant strikes the human side of the bank by showing real emotions and requesting them to show some kindness and allow more time to repay the loan.

Key Elements to include in Promissory Note for Delayed Payments:

  • Name of the recipient of the letter
  • Date of writing the letter
  • Subject of the letter
  • formal introduction of the person writing the letter
  • Explanation of the loan agreement, capital amount, interest rate
  • Pending amount of the loan
  • Particular circumstances that caused the delay in the payment
  • Expected timeline to repay the loan
  • Formal request to extend loan limit/duration before foreclosing

Sample Promissory Note for Delayed Payments

 

Mr. Adam Smith

Manager FWO

Commercial Bank Ltd

West Downtown Area

Washington DC

Date: 18th December 2021

 

Subject: promissory note for delayed payment

 

Dear Mr. Smith,

I hope you are in good health. I am writing this letter in response to the late payment notice I received from your bank 2 days ago. With this letter, I am formally requesting you to extend my credit period and that I will make the balance payment as soon as possible.

I took a loan of $500,000 from your bank at a fixed interest rate of 7.2% for 2 years. In the agreement, I agreed that if I fail to pay back the loan within the next 2 years, I will comply with the interest rate of 9% for the 3rd year. If I fail to completely return the capital amount with the interest gain within 4th year, the bank has every right to seize my pledged property and auction it.

It’s already been 4 years and I am sorry to say that I haven’t paid the loan to you yet. There is still the capital amount of $50,000 that is unpaid along with $23,000 in interest. I am not saying that I won’t be able to pay it back but I am just asking for a little more time from your side before you sell my home in the auction to recover your amount.

You know it very well that last year and the year before that wasn’t good for businesses because of the pandemic and overall failed financial situations of the businesses. I am running my company for the past 15 years and I never had to fire an employee because of money issues. Last year because of COVID19, I had to fire 3 of the employees, and overall decreased sales hugely affected my profit margin.

I have a very good and long relationship with your bank and I never defaulted on any payment let alone delaying or not paying it at all. For the sake of our past together, I am requesting you to reconsider your request of foreclosing my residence and allow me 2-3 months to make the loan payments. Because this is a problem from my end, I am willing to pay an interest rate of 12% for the remaining amount of the capital figure. The pandemic is almost over and the sales have started to increase since last week and I am very positive that the whole situation will be in my control within the next 4-5 weeks.

I hope to hear good news from you very soon.

 

Regards

Joshua Sestina

CEO

Oregon Pharmaceutical Pvt Ltd

Application Letter for New Mortgage Loan

A formal letter that is written by individuals or companies and corporations to bank managers in order to ask them to provide a mortgage loan is known as the application letter for new mortgage loan. This letter is different from the simple loan request letter. In most cases, this request letter is addressed to the bank manager or branch supervisor but you can also write the letter without addressing anyone and the bank will refer the letter to whomever it may concern or to the person in charge of mortgage loan plans.

Brief Description of Application Letter for New Mortgage Loan:

There are many times when individuals and companies need urgent cash or money and they can’t find it from any friends or partners so banks come in for help. If you are good and reliable citizen, you can ask banks for loans. Many people make the mistake of resembling the mortgage loan letter with simple loan letter but they are different. The simple loan letter is just an application to get some loan without pledging any property or shares with the bank where the mortgage loan application asks the banks to take a look at the property and decide how much loan they can issue on mortgage.

Most people take only one mortgage loan on their properties but if they are paying their installments on time and schedule, they can also get a second mortgage on the property from the same bank or another bank depending on the situation and bank policies. Also, the mortgage loan application takes more time as the bank has to evaluate the mortgage property first and then prepare a statement of how much loan it can provide to the client. This is why if you are asking for mortgage loan, you need to send the application 2 to 3 weeks before you actually need loan money.

Sample Application Letter for New Mortgage Loan:

To: senior manager

National Capital bank, main branch

New York NY 35094

Subject: mortgage loan information

Date: 19 January 2015

Dear Sir,

I am regular customer of your bank and I have two accounts in your bank where my salary and other payments are transferred every month. With my accounts’ details, you can see that I always keep good amount of cash in my account so that proves that I won’t be a liability for your bank if you issue loan to me.

I have attached the details of my property/shares or stocks that I want to pledge with your bank for mortgage loan. Kindly consider my application and start the process as soon as possible so that you can evaluate the worth of property and issue the loan.

I have also attached testimony or insurance of two of my neighbors that will also act like my guarantors in this case. You can also talk to them and make the decision as soon as possible because I need the loan money without 15 days or less.

I hope you will consider me as a valuable applicant for this mortgage loan request.

Regards,

Thomas John

Account number: 98-23597-028470-112-1

Signature