<PAGE>

Exhibit 4.1  Loan and Security Agreement, $500,500 working capital facility,
Suntrust Bank, Atlanta, GA

                                    Borrower
                           ALLIANCE HEALTHCARD, INC.
                                                                  COMMERCIAL
SunTrust                                                        VARIABLE RATE
                                                                 REVOLVING OR
SunTrust Bank                                                     DRAW NOTE
211 Perimeter Ctr Pkwy Ste 100
Atlanta, GA  30346
(770) 352-5266    "LENDER"
                                    ADDRESS
                           3500 PARKWAY LANE STE 310
                              NORCROSS, GA  30092
                TELEPHONE NO.                IDENTIFICATION NO
                (770) 734-9255               58-2445301-45
<TABLE>
<CAPTION>
                                     Principal
    Officer                        Amount/Credit     Funding/Agreement                    Customer
 Identification   Interest Rate        Limit               Date           Maturity Date    Number     Loan Number
------------------------------------------------------------------------------------------------------------------------
<S>               <C>              <C>               <C>                  <C>             <C>         <C>
     82003          Variable        $500,500.00          03/31/01           09/28/01                    0201173009
------------------------------------------------------------------------------------------------------------------------
</TABLE>

Purpose:  WORKING CAPITAL
-------------------------
PROMISE TO PAY:  For value received, Borrower promises to pay to the order of
Lender the principal amount of Five Hundred Thousand Five Hundred and no/100
Dollars ($500,500.00) or, less, the aggregate unpaid principal amount of all
loans or advances made by the Lender to the Borrower under this Note, plus
interest on the unpaid principal balance at the rate and in the manner described
below, until all amounts owing under this Note are paid in full.  All amounts
received by Lender shall be applied first to late charges and expenses, accrued
unpaid interest, then to unpaid principal, or in any other order as determined
by Lender, in Lender's sole discretion, as permitted by law.

REVOLVING OR DRAW FEATURE: [X] This Note possesses a revolving feature.  Upon
satisfaction of the conditions set forth in this Note, Borrower shall be
entitled to borrow up to the full principal amount of the Note and to repay and
reborrow from time to time during the term of this Note.  This Note possesses a
draw feature.  Upon satisfaction of the conditions set forth in this Note,
Borrower shall be entitled to draw one or more times under this Note.  Any
repayment may not be reborrowed.  The aggregate amount of such draws shall not
exceed the full principal amount of this Note.

Information with regard to any loans or advances under this Note shall be
recorded and maintained by Lender in its internal records and such records shall
be conclusive of the principal and interest owed by Borrower under this note
unless there is a material error in such records.  The Lender's failure to
record the date and amount of any loan or advance shall not limit or otherwise
affect the obligations of the Borrower under this Note to repay the principal
amount of the loans or advances together with all interest accruing thereon.
Borrower shall be entitled to inspect or obtain a copy of the records during
Lender's business hours.

CONDITIONS FOR ADVANCES:  If no Event or Default has occurred under this Note,
Borrower shall be entitled to borrow monies under this Note (subject to the
limitations described above) under the following conditions:

      Disbursements will be made at the sole discretion of the Lender unless the
      Lender has otherwise specifically made A legally binding written
      commitment to make disbursements hereunder.

INTEREST RATE:  This Note has a variable rate feature.  The interest rate on
this Note may change from time to time if the Index Rate identified below
changes.  Interest shall be computed on the basis of the actual number of days
                                                     -------------------------
over 360 days per year.  Interest on this Note shall be calculated and payable
-------------
at a variable rate equal to 0.500% per annum over the Index Rate.  The initial
                            ------           ----
interest rate on this Note shall be 8.500% per annum.  Any change in the
                                    ------
interest rate resulting from a change in the Index Rate will be effective on:

          Each day the Index Rate changes
          -------------------------------
<PAGE>

INDEX RATE:  The Index Rate for this Note shall be:
          The rate of interest from time to time designated by the Lender as its
          "Prime Rate", which rate is not necessarily The Lender's best or
          lowest rate of interest.
If the Index Rate is redefined or becomes unavailable, then Lender may select
another index rate which is substantially similar.

DEFAULT RATE:  If there is an Event or Default under this Note, the Lender may,
in its discretion, increase the interest rate on this Note to:  4% per annum
                                                                ------------
above interest rate accruing at maturity or at acceleration
-----------------------------------------------------------

Of the maximum interest rate Lender is permitted to charge by law, whichever is
less.
PAYMENT SCHEDULE:  Borrower shall pay the principal and interest according to
the following schedule:

     Interest only payments beginning April 28, 2001 and continuing at monthly
     time intervals thereafter.  A final payment of the unpaid principal balance
     plus accrued interest is due and payable on September 28, 2001.

PREPAYMENT:   This Note may be prepaid in part or in full on or before its
maturity date.  If this Note contains more than one installment, any partial
prepayment will not affect the due date or the amount of any subsequent
installment, unless agreed to, in writing, by Borrower and Lender.  If this Note
is prepaid in full, there will be:  X  No minimum finance charge.  __   A
minimum finance charge of $______.

LATE CHARGE:  If a payment is received more than 15 days late, Borrower will be
                                                 ---
charged a late charge of :__% of the unpaid
Portion of the payment; X  $50.00 or 5.00% of the unpaid portion of the payment,
                           ---------------
whichever is __ greater  X  less.

COLLATERAL:  To secure the payment and performance of obligations incurred under
this Note, Borrower grants Lender a security interest in all of Borrower's
right, title, and interest in all monies, instruments, savings, checking and
other accounts of Borrower (excluding IRA, Keogh and other accounts subject to
tax penalties if so assigned) that are now or in the future in Lender's custody
or control.  __  If checked, the obligations under this Note are also secured by
the collateral described in any security instruments executed in connection with
this Note, and any collateral described in any other security instruments
securing this Note or all of Borrower's obligations to Lender.

RENEWAL:  [X] If checked, this Note is a renewal, but not a satisfaction, of
              Loan Number 0201173009-26.
                          -------------
--------------------------------------------------------------------------------
THE PERSONALS SIGNING BELOW ACKNOWLEDGE THAT THEY HAVE READ, UNDERSTAND, AND
AGREE TO THE PROVISIONS OF THIS NOTE, INCLUDING THE TERMS AND CONDITIONS ON THE
REVERSE SIDE, AND FURTHER ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS NOTE.

Dated:  March 31, 2001
BORROWER:  ALLIANCE HEALTHCARD INC.      BORROWER:  ALLIANCE HEALTHCARD, INC.
By:                                      By:
   --------------------------------          -------------------------------
ROBERT D. GARCES                         THOMAS KISER
CHIEF EXECUTIVE OFFICER                  PRESIDENT



                              TERMS AND CONDITIONS


1.  EVENT OF DEFAULT. An Event or Default shall occur under this Note in the
    event that Borrower, any guarantor or any other third party pledging
    collateral to secure this Note.
        a.  Fails to make any payment on this Note or any other indebtedness to
            Lender when due:
        b.  Fails to perform any obligation or breaches any warranty or covenant
            to Lender contained in this Note, any security instrument, or any
            other present or future written agreement regarding this or any
            other indebtedness of Borrower to Lender.
        c.  Provides or causes any false or misleading signature or
            representation to be provided to Lender:
        d.  Sells, conveys, or transfers rights in any collateral securing this
            Note without the written approval of Lender; or destroys, loses or
            damages such collateral in any material respect: or subjects such
            collateral to seizure, confiscation or condemnation.
        e.  Has a garnishment, judgement, tax levy, attachment or lien entered
            or served against Borrower, any guarantor, or any third party
            pledging collateral to secure this Note or any of their property;
<PAGE>

        f.  Dies, becomes legally incompetent, is dissolved or terminated,
            ceases to operate its business, becomes insolvent, makes an
            assignment for the benefit of creditors, fails to pay debts as they
            become due, or becomes the subject of any bankruptcy, insolvency or
            debtor rehabilitation proceeding;
        g.  Fails to provide Lender evidence of satisfactory financial
            condition;
        h.  Has a majority of its outstanding voting securities sold, conveyed,
            or transferred to any person or entity other than any person or
            entity that has the majority ownership as of the date of the
            execution of this agreement; or
        i.  If Lender deems itself insecure in good faith with respect to any of
            the obligations or indebtedness.

2. RIGHTS OF LENDER ON EVENT OF DEFAULT. If there is an Event or Default under
   this Note, Lender will be entitled to exercise one or more of the following
   remedies without notice or demand (except as required by law):
      a.  to declare the principal amount plus accrued interest under this Note
          and all other present and future obligations of Borrower immediately
          due and payable in full; such acceleration shall be automatic and
          immediate if the Event of Default is a filing under the Bankruptcy
          Code;
      b.  to collect the outstanding obligations of Borrower with or without
          resorting to judicial process;
      c.  to cease making advances under this Note or any other agreement
          between Borrower and Lender;
      d.  to take possession of any collateral in any manner permitted by law;
      e.  to require Borrower to deliver and make available to Lender any
          collateral at a place reasonably convenient to Borrower and Lender;
      f.  to sell, lease or otherwise dispose of any collateral and collect any
          deficiency balance with or without resorting to legal process;
      g.  to set-off Borrower's obligations against any amounts due to Borrower
          including, but not limited to, monies, instruments, and deposit
          accounts maintained with Lender; and
      h.  to exercise all other rights available to Lender under any other
          written agreement or applicable law.

   Lender's rights are cumulative and may be exercised together, separately, and
   in any order.  Lender's remedies under this paragraph are in addition to
   those available under any other written agreement or applicable law.

3. DEMAND FEATURE. [__] If checked, this Note contains a demand feature.
   Lender's right to demand payment, at any time, and from time to time, shall
   be in Lender's sole and absolute discretion, whether or not any default has
   occurred.

4. FINANCIAL INFORMATION.  Borrower will at all times keep proper books of
   record and account in which full, true and correct entries shall be made in
   accordance with generally accepted accounting principles and will deliver to
   Lender, within ninety (90) days after the end of each fiscal year of
   Borrower, a copy of the annual financial statements of Borrower relating to
   such fiscal year, such statements to include (i) the balance sheet of
   Borrower as at the end of such fiscal year and (ii) the related income
   statement, statement of retained earnings and statement of changes in the
   financial position of Borrower for such fiscal year, prepared by such
   certified public accountants as may be reasonably satisfactory to Lender.
   Borrower also agrees to deliver to Lender within fifteen (15) days after
   filing same, a copy of Borrower's income tax returns and also, from time to
   time, such other financial information with respect to Borrower as Lender may
   request.

5. MODIFICATION AND WAIVER. The modification or waiver of any of Borrower's
   obligations or Lender's rights under this Note must be contained in a writing
   signed by Lender. Lender may perform any of Borrower's obligations or delay
   or fail to exercise any of its rights without causing a waiver of those
   obligations or rights. A waiver on one occasion will not constitute a waiver
   on any other occasion. Borrower's obligations under this Note shall not be
   affected if Lender amends, compromises, exchanges, fails to exercise, impairs
   or releases any of the obligations belonging to any Borrower or guarantor or
   any of its rights against any Borrower, guarantor, or any collateral securing
   any of Borrower's obligations.

6. SEVERABILITY. If any provision of this Note violates the law or is
   unenforceable, the rest of the Note shall remain valid. Notwithstanding
   anything contained in this Note to the contrary, in no event shall interest
   accrue under this Note, before or after maturity, at a rate in excess of the
   highest rate permitted by applicable law, and it interest (including any
   charge or fee held to be interest by a court of competent jurisdiction) in
   excess thereof be paid, any excess shall constitute a payment of, and be
   applied to, the principal balance hereof, and if the principal balance has
   been fully paid, then such excess interest shall be repaid to Borrower.

7. ASSIGNMENT. Borrower agrees not to assign any of Borrower's rights, remedies
   or obligations described in this Note without the prior written consent of
   Lender, which consent may be withheld by Lender in its sole discretion.
   Borrower agrees that Lender is entitled to assign some or all of its rights
   and remedies described in this Note without notice to or the prior consent of
   Borrower.
<PAGE>

8.  NOTICE. Any notice or other communication to be provided to Borrower or
    Lender under this Note shall be in writing and mailed to the parties at the
    addresses described in this Note or such other address as the parties may
    designate in writing from time to time.

9.  APPLICABLE LAW. This Note shall be governed by the laws of the state
    indicated in Lender's address. Unless applicable law provides otherwise,
    Borrower consents to the jurisdiction and venue of any court located in such
    state selected by Lender, in its discretion, in the event of any legal
    proceeding under this Note.

10. COLLECTION COSTS AND ATTORNEYS' FEES. To the extent permitted by law,
    Borrower agrees to pay all costs of collection, including attorneys' fees of
    15 percent of the principal and interest owing on the indebtedness if the
    indebtedness is collected by law or through an attorney at law.

11. MISCELLANEOUS. This note is being executed primarily for commercial,
    agricultural, or business purposes. Borrower will provide Lender with
    current financial statements and other financial information upon request.
    Borrower and Lender agree that time is of the essence. Borrower agrees to
    make all payments to Lender at any address designated by Lender and in
    lawful United States currency. Borrower and any person who endorses this
    Note waives presentment, demand for payment, notice of dishonor and protest
    and further waives any right to require Lender to proceed against anyone
    else before proceeding against Borrower or said person. All references to
    Borrower in this Note shall include all of the parties signing this Note,
    and this Note shall be binding upon the heirs, personal representatives,
    successors and assigns of Borrower and Lender. If there is more than one
    Borrower their obligations under this Note shall be joint and several. This
    Note represents the complete and integrated understanding between Borrower
    and Lender regarding the terms hereof.

12. JURY TRIAL WAIVER. LENDER AND BORROWER HEREBY WAIVE ANY RIGHT TO A TRIAL BY
    JURY IN ANY CIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS NOTE OR THE
    COLLATERAL SECURING THIS NOTE.

13. ADDITIONAL TERMS:
<PAGE>

                                    Borrower
                           ALLIANCE HEALTHCARD, INC.
                                                             SCHEDULE OF FEES,
SunTrust                                                        CHARGES OR
                                                               DISBURSEMENTS
SunTrust Bank          .
211 Perimeter Ctr Pkwy Ste 100
Atlanta, GA  30346
(770) 352-5266    "LENDER"
                                    ADDRESS
                           3500 PARKWAY LANE STE 310
                              NORCROSS, GA  30092
                TELEPHONE NO.                IDENTIFICATION NO
                (770) 734-9255                 58-2445301-149

<TABLE>
<CAPTION>
                                     Principal
    Officer                        Amount/Credit     Funding/Agreement                    Customer
 Identification   Interest Rate        Limit                Date          Maturity Date    Number      Loan Number
------------------------------------------------------------------------------------------------------------------------
<S>               <C>            <C>                 <C>                  <C>            <C>           <C>
     82003          Variable        $500,500.00           03/31/01          09/28/01                    0201173009
------------------------------------------------------------------------------------------------------------------------
</TABLE>

Borrower has borrowed money from Lender indicated above pursuant to the above
referenced Promissory Note or Agreement.  Borrower acknowledges that the
following fees, charges and disbursements have been made or assed in connection
with the Note or Agreement.

LINE OF CREDIT AMOUNT:                                             $500,500.00
                                                                   -----------
AMOUNT DISBURSED TO BORROWER FROM LINE OF CREDIT:                  n/a
                                                                   -----------
AMOUNT DRAWN TO PAY OR CREDIT TO BORROWER'S ACCOUNTS WITH LENDER:  $474,972.23
                                                                   -----------
     ACCOUNT NUMBER CREDITED:
                                                                   -----------
     ACCOUNT NUMBER CREDITED:
                                                                   -----------
     ACCOUNT NUMBER CREDITED:
                                                                   -----------
     ACCOUNT NUMBER CREDITED:
                                                                   -----------
AMOUNT OF LOAN PROCEEDS PAID TO OTHERS ON THE BORROWERS BEHALF:    $
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
     PAYEE:
                                                                   -----------
TOTAL PROCEEDS DISBURSED:                                          $474,972.23
                                                                   -----------

                                              PAID IN CASH    DEDUCTED FROM LINE
AMOUNT PAID TO PUBLIC OFFICIALS:              $               $
                                               -----------     ----------------
AMOUNT PAID TO INSURANCE COMPANIES:           $               $
                                               -----------     ----------------
AMOUNT PAID TO APPRAISERS:                    $               $
                                               -----------     ----------------
AMOUNT PAID TO CREDIT REPORTING AGENCIES:     $               $
                                               -----------     ----------------
TITLE EXAMINATION:                            $               $
                                               -----------     ----------------
SETTLEMENT/CLOSING FEE:                       $               $
                                               -----------     ----------------
TITLE INSURANCE BINDER:                       $               $
                                               -----------     ----------------
ATTORNEY:                                     $               $
                                               -----------     ----------------
<PAGE>

DOCUMENT PREPARATION FEE:                     $               $
                                               -----------     ----------------
NOTARY:                                       $               $
                                               -----------     ----------------
SURVEYOR:                                     $               $
                                               -----------     ----------------
PEST INSPECTOR:                               $               $
                                               -----------     ----------------
ABSTRACT/TITLE SEARCH:                        $               $
                                               -----------     ----------------
TITLE INSURER:                                $               $
                                               -----------     ----------------
CITY/COUNTY TAX DEED/MORTGAGE:                $               $
                                               -----------     ----------------
STATE TAX DEED, MORTGAGE:                     $               $
                                               -----------     ----------------
HAZARD INSURANCE PREMIUM:                     $               $
                                               -----------     ----------------
FLOOD INSURANCE PREMIUM:                      $               $
                                               -----------     ----------------
                                              $               $
                                               -----------     ----------------
                                              $               $
                                               -----------     ----------------
                                              $               $
                                               -----------     ----------------
                                              $               $
                                               -----------     ----------------
                                              $               $
                                               -----------     ----------------
                                              $               $
                                               -----------     ----------------



LOAN ORIGINATION FEE                          $               $500
                                               -----------     ----------------
POINTS/DISCOUNT                               $               $
                                               -----------     ----------------
LENDERS INSPECTION FEE                        $               $
                                               -----------     ----------------
ASSUMPTION FEE                                $               $
                                               -----------     ----------------

TOTAL PREPAID FINANCE CHARGES AND FEES PAID IN CASH:    $      n/a
                                                        -----------
TOTAL PREPAID FINANCE CHARGES AND FEES DEDUCTED FROM LINE:     $500
                                                               ----------------
BALANCE REMAINING TO BE DRAWN ON LINE:                         $25,027.77
                                                               ----------------
______________________________________________________________________________

DATED:  March 31, 2001

Borrower:  ALLIANCE HEALTHCARD INC.      Borrower:  ALLIANCE HEALTHCARD INC.

By:                                      By:
   -----------------------------            -------------------------------
ROBERT D GARCES                          THOMAS KISER
CHIEF EXECUTIVE OFFICER                  PRESIDENT