Subordinated Promissory Note (Genie AI)

The Subordinated Promissory Note (Genie AI) legal template is a document that outlines the terms and conditions of a loan agreement between two parties, where one party acts as the lender and the other as the borrower. This template specifically caters to loans involving the use of advanced artificial intelligence technology, represented by a company called Genie AI.

The purpose of this template is to establish a legally binding agreement between the lender and the borrower, detailing the terms of the loan, repayment schedule, interest rates, and any specific provisions or conditions that are relevant to the loan involving Genie AI. It also outlines the rights and responsibilities of both parties throughout the duration of the loan.

Since the loan is considered subordinated, it means that in the event of borrower default or insolvency, the lender agrees to take a secondary position for repayment, after other primary lenders or creditors have been satisfied. This arrangement allows the borrower to obtain additional financing from other sources, as the subordinated loan indicates a higher level of risk for the lender.

It's worth noting that the inclusion of Genie AI in the template implies that the loan's purpose involves implementing, developing, or utilizing artificial intelligence technology for the borrower's business or enterprise. This could range from advancing AI algorithms, software development, or other applications that maximize the potential benefits of AI.

To ensure the enforceability and legal validity of the loan, it is strongly recommended that both parties consult with legal professionals familiar with contract law and the use of AI technology before signing the Subordinated Promissory Note (Genie AI).