Cancellation Of Promissory Note: Fill & Download for Free

A promissory note by itself is not sufficient to succeed against the debtor in a court of law.It is compulsory to prove the passing of consideration to the debtor from the creditor in order to succeed in a case against a debtor on the basis of a promissory note.Hence you have to prove the fact that consideration was passed to the debtor by the creditor in lieu of which the debtor executed the Demand Promissory Note.The Demand Promissory Note required compulsory affixing of revenue stamps of the value as applicable at the place where the said promissory note is executed. The said stamp should be cancelled by signing accross it by the debtor.Law of promissory notes is a vast subject by itself.Now a days cheques are better accepted as negotiable instruments as presumption of passing of the consideration is presumed in lieu of which the cheque has been issued. Onus lies on the issuer of the cheque to prove that the cheque was issued without consideration, and this is very tough to prove as against the presumption.As such though there is no bar of filing a suit against a debtor on the basis of a promissory note but by itself the suit will not be decreed by itself without proof of consideration.Disclaimer: above is not a legal advice to constitute a client attorney relationship between us. You should act and take decision as per your personal wisdom according to the applicable facts of your case.

Short answer - yes, all of this is possible between consenting adults. But you can't force the shareholder to accept an IOU instead of cash if they object, or to sell their shares at all, unless their agreement says so.AFAIK, a company may redeem shares, pay for them with a note, cancel them, and/or control the voting rights, if and only if those provisions are contained in the share purchase agreement that the original holder of the shares accepted at the time they originally purchased the shares, if someone in the chain of ownership subsequently agreed to the provision, or if the current holder agrees to that at the time of redemption. There's certainly nothing to prevent the parties from agreeing to this. Shares can be redeemed in exchange for the note, after which they are no longer outstanding shares. By contrast, the parties could also agree that the company holds them in treasury or escrow on behalf of the holder, with no voting rights, until they are paid. On the other hand, if there is no agreement in place the company would have to convince each shareholder, individually, to agree to give up the shares in exchange for the note. They'd likely have to sweeten the deal somehow for the shareholders to accept, good luck!This answer is for common shares in privately held companies, not publicly traded companies that may be subject to some other regulations. Also, not legal advice for any specific instance per usual lawyer disclaimers and Quora's legal advice template.

Aaron and Cliff give accurate answers, but there are a few nuances:Federal Perkins: Discharged upon death of the student borrower.Federal Stafford: Discharged upon death of the student borrower.Federal Parent PLUS: Discharged upon death of the parent borrower or upon death of the student for whom the debt was incurred. (Death of the student is only for new loans borrowed on or after 7/23/1992.) This is the case even for loans with an endorser.Federal Grad PLUS: Discharged upon death of the student borrower. This is the case even for loans with an endorser.Private student loans: Depends on the terms of the promissory note. Recently some lenders have added death and disability discharges. These include the Sallie Mae Smart Option loan, New York HESC's NYHELPs loan and Wells Fargo private student loans. See http://www.fastweb.com/financial-aid/articles/2935-wells-fargo-adds-death-and-disability-discharges-to-private-student-loansOtherwise, when the student dies, private student loans are normally charged against the student's estate. If the estate does not pay off all the debt, then any remaining amount owed may be charged against the cosigners, if any. If a relative did not cosign the loan, they are not responsible for repaying the debt. It's generally a good idea for cosigners to ask the lender for a compassionate review in the event of the student borrower's death, especially if the student was killed in action while serving in the military or public safety or if the cosigners are incapable of repaying the debt.Note that cancellation of debt can sometimes lead to a tax liability, since the cancellation is treated like income to the borrower. This mostly affects borrowers of Parent PLUS loans. While the tax burden is less than the original debt, it can still represent a significant burden on the borrower.