Legal Question in Investment Law in California

Re: Unpaid prommisory note

The word is probably "inure" rather than "ensure."

The language is legal boilerplate tending to give the note a little extra staying power. For example, if you were to die before the note was paid off, your executor or heirs could collect. If the issuing company were to be bought up by a bigger company, the bigger company would have to pay the note.

A lot of this would happen anyway, even if the language weren't there.

One significant effect of the language is to clear up and doubt whether the note is negotiable. Some promissory notes are made specifically non-negotiable by their terms, e.g., they say they are non-negotiable and that means the original holder/payee cannot sell or transfer the note to another. If the note is silent as to negotiability, then it is presumed negotiable, and in this case that presumption is underscored by the language making it inure to the benefit of your assignee.

Re: Unpaid prommisory note

This legal language simply means that your note can still be contractually enforced against present or future vested interests of the note at issue. If you would like prompt legal assistance in recovering what is lawfully owed to you at this time, email your request to our Law Firm directly.