Peace Officers UK Payment Scheduled Promissory Notes can be purchased from the Peace Officers UK shop.

The pack includes:

• The Promissory Note template
• Instructions
• Sample covering letters

These are designed to assist individuals who wish to structure a debt into scheduled monthly payments using a Promissory Note.

1. Completing the Promissory Note

Prepare the Promissory Note before sending anything.

Information required

1. Your full name and address
2. Creditor or company name and address
3. Account or reference number
4. Total amount claimed (the face value)
5. Monthly payment amount
6. Monthly payment date (for example: on or around the 1st of each month)
7. Place for collection or presentation (normally your address or agreed location)

How to complete it

1. Enter the full amount claimed as the face value of the Promissory Note.
2. State that the note will be redeemed through scheduled monthly payments.
3. Clearly state the monthly payment amount.
4. Specify the payment date each month.
5. Include wording stating that the holder must present the original Promissory Note to collect payment.
6. Ensure the wording remains an unconditional promise to pay a certain sum.
7. Sign and date the Promissory Note.

2. Keeping Records

Before sending the note:

1. Make a copy or scan of the completed Promissory Note.
2. Keep copies of:
   • The Promissory Note
   • The covering letter
   • Proof of postage
3. Create a simple payment log to record each monthly payment.

3. Sending the Promissory Note

1. Send the original Promissory Note to the creditor.
2. Include a covering letter explaining:
   • The monthly payment schedule
   • The date payments can be collected
   • That collection requires presentation of the original Promissory Note
3. Send using a tracked postal service.
4. Keep the tracking reference.

4. How Acceptance Occurs

Definition of Acceptance (Glossary)

Section 2:

“Acceptance” means an acceptance completed by delivery or notification.

Meaning:
Acceptance becomes legally effective when the acceptance has been delivered or communicated (notified).

Bills of Exchange Act 1882, 45 & 46 Vict. c. 61, Royal Assent: 18 August 1882

5. If the Promissory Note Is Returned or Rejected

Sometimes a creditor may return the Promissory Note or claim they cannot accept it.

If this happens:

1. Return the Promissory Note to them again.
2. Include a letter stating that the instrument is issued in accordance with the Bills of Exchange Act 1882.
3. Confirm that the Promissory Note represents a lawful instrument for payment of a debt.
4. Request that they either accept the instrument or provide a lawful reason for refusal.

Maintain copies of all correspondence.

6. Possible Legal Position if the Instrument Is Refused

Where a valid Promissory Note is issued and refused, some individuals choose to pursue further action depending on the circumstances.

Possible steps may include:

1. Formal Notice of Dishonour
   • Notifying the creditor that the instrument has been dishonoured.
2. Letter Before Claim / Notice of Fault
   • Asking the creditor to explain the refusal to accept the instrument.
3. Civil Claim for Breach of Commercial Process or Agreement
   • If the creditor continues enforcement while refusing the instrument.
4. Evidence in Court Proceedings
   • The Promissory Note and correspondence may be used to demonstrate an attempt to tender payment through a negotiable instrument.

Anyone considering legal action should research the relevant law and court procedures.

7. Monthly Payment Methods

Two common ways monthly payments may be handled. POUK recommend the first method but want to point out that there is another option. It is up to you to choose your preferred method.

Option A — Collection Upon Presentation

How it works

1. The creditor contacts you to arrange a collection appointment.
2. They bring the original Promissory Note.
3. The note is presented for payment.
4. The agreed monthly payment is made.
5. The payment is recorded in your payment log.

Advantages

• Ensures the original note must be presented.
• Helps prevent the instrument being transferred or traded without your knowledge.
• Provides a clear recorded payment event each month.

Disadvantages

• Requires monthly coordination or appointments.
• Can be less convenient than automated payments.

Option B — Standing Order Payments

How it works

1. A standing order is set up for the agreed monthly amount.
2. Payments are sent automatically each month.
3. Payments continue until the full amount has been redeemed.

Advantages

• Convenient and automatic.
• No need to arrange monthly meetings.
• Provides a bank payment record.

Disadvantages

• Payments may continue even if the Promissory Note is transferred or sold.
• Does not require presentation of the original instrument.

8. Ongoing Record Keeping

Maintain clear records throughout the process.

Record:

1. Each payment date
2. Amount paid
3. Method of payment
4. Receipt or confirmation if provided

Continue until the full face value of the Promissory Note has been redeemed.