Demand Note

Demand Promissory Note

For value received, the undersigned promises to pay on demand to the order of , a banking corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Bank, $ , with interest on that amount from (date) at the rate of % per year until paid, all interest being payable monthly. Interest shall be computed on the basis of a 360-day year.

The term Collateral, as used in this Note, shall mean the following property which has been or is by this instrument delivered, pledged, assigned, and transferred to the Bank: and any other property of every kind or description of the undersigned now or later in the possession or control of the Bank for any purpose and all dividends and distributions on or other rights in connection with any property referred to above.

The undersigned agrees to deliver to the Bank, on its request, any such dividends, distributions, and rights which may at any time come into the possession of the undersigned. The undersigned agrees that the Bank shall have a lien on and a security interest in the Collateral to secure the payment of this Note and of all other obligations of the undersigned to the Bank, however created, arising or evidenced, whether direct or indirect, absolute or contingent, or now or later existing, or due to become due.

This Note and the other obligations referred to above are collectively called the "Liabilities." The cancellation or surrender of this Note, on payment or otherwise, shall not affect the right of the Bank to retain the Collateral for any other Liabilities. The Bank shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if it takes such action for that purpose as the undersigned shall request in writing, but failure of the Bank to comply with any such request shall not of itself be deemed a failure to exercise reasonable care, and no failure of the Bank to preserve or protect any rights with respect to the Collateral against prior parties, or to do any act with respect to the preservation of the Collateral not so requested by the undersigned, shall be deemed a failure to exercise reasonable care in the custody or preservation of the Collateral.

In addition to all other rights possessed by it, the Bank, from time to time, whether before or after any of the Liabilities shall become due and payable, may take any or all of the following actions:

A. Transfer all or any part of the Collateral into the name of the Bank or its nominee, with or without disclosing that the Collateral is subject to the lien and security interest under this Note;

B. Notify the parties obligated on any of the Collateral to make payment to the Bank of any amounts due or to become due under this Note;

C. Enforce collection of any of the Collateral by suit or otherwise and surrender, release, or exchange all or any part of it, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party or parties with respect to the same;

D. Take control of any proceeds of the Collateral; and

E. Exercise such additional rights and powers, if any, with respect to any security for or guaranty of any of the Liabilities, as may be provided in any written instrument (in addition to this Note).

In the event of the non-payment, when due, of any amount payable on any of the Liabilities, or if the Bank shall feel insecure for any reason whatever, then (1) this Note and all other liabilities may, at the option of the Bank, and without demand or notice of any kind, be declared, and then immediately shall become due and payable; (2) the undersigned agrees to pay all expenses of the Bank of collection of this Note, and enforcement of rights under any of the Collateral, including reasonable attorney's fees and legal expenses; (3) the Bank may exercise from time to time any rights and remedies available to it under the Uniform Commercial Code as in effect from time to time in or otherwise available to it, including those available under any written agreement or instrument (in addition to this Note) relating to any of the Liabilities or any security for the same; and (4) the Bank may, without demand or notice of any kind, appropriate and apply toward the payment of such of the Liabilities and in such order of application as the Bank may from time to time elect, any balances, credits, deposits, accounts, or moneys of the undersigned.

If any notification of intended disposition of any of the Collateral is required by law, such notification, if mailed, shall be deemed reasonably and properly given if mailed at least days before such disposition, postage prepaid, addressed to the undersigned either at the address shown below, or at any other address of the undersigned appearing on the records of the Bank. Any proceeds of any disposition of Collateral may be applied by the Bank to the payment of expenses in connection with the Collateral, including reasonable attorney's fees and legal expenses, and any balance of such proceeds may be applied by the Bank toward the payment of such of the Liabilities, and in such order of application, as the Bank may from time to time elect. No delay on the part of the Bank in the exercise of any right or remedy shall operate as a waiver of the same, and no single or partial exercise by the Bank of any right or remedy shall preclude other or further exercise of the same or the exercise of any other right or remedy. If more than one party shall execute this Note, the term "undersigned" as used in it shall mean all parties signing this Note and each of them, and all such parties shall be jointly and severally obligated under the Note.

The loan evidenced by this Note has been made, and this Note has been delivered, at the offices of the Bank, and shall be governed by the laws of (name of state). If this Note is not dated, when executed by the undersigned, the Bank is authorized, without notice to the undersigned, to date this Note as of the date when the loan evidenced by this Note is made. Wherever possible each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law. However, if any provision of this Note shall be prohibited by or invalid under the law, the provision shall be ineffective to the extent of the prohibition or invalidity, without invalidating the remainder of the provision or the remaining provisions of this Note.

To secure the payment of the amount due or to become due under this Note, the undersigned, and each of them authorize irrevocably any attorney of any court of record to appear for the undersigned or any one or more of them in the court, in term time or vacation, and at any time in the future and confess judgment without process in favor of the legal holder of this Note for such amount as may appear unpaid on it, together with costs and reasonable attorney's fees, and to waive and release all errors which may intervene in any such proceeding and to consent to immediate execution on the judgment, by such action ratifying and confirming all that the attorney may do by virtue of this Note.

Witness my signature this the (date).