Document background
The Trust Promissory Note is a specialized financial instrument used in situations where there is a need to combine debt obligations with trust arrangements under Dutch law. This document type is particularly relevant when a promise to pay needs to be held and managed by a trustee for the benefit of specific beneficiaries, such as in family wealth planning, structured finance transactions, or complex business arrangements. The document establishes the fundamental promise to pay, similar to a standard promissory note, but places it within a trust structure, defining the trustee's powers and responsibilities in managing the note. It incorporates provisions that comply with Dutch legal requirements and the Hague Trust Convention, making it suitable for both domestic Dutch transactions and international arrangements where Dutch law is chosen as the governing law. The Trust Promissory Note typically includes detailed payment terms, interest calculations, security arrangements (if any), and specific provisions for the protection of beneficiary interests.
