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promissory note



formal unconditional promise in writing to pay on demand or at a future date a definite sum of money. The person who signs the note and promises to pay is called the maker of the note. The person to whom payment is to be made is called the payee of the note.


Dictionary of Finance and Investment Terms
promissory note

written promise committing the maker to pay the payee a specified sum of money either on demand or at a fixed or determinable future date, with or without interest. Instruments meeting these criteria arenegotiable. Often called, simply, anote.


Dictionary of Banking Terms
promissory note

written promise to pay, frequently used in installment loans and commercial loans. Apromissory note is the legal evidence of a debt, a promissory note may be transferred to a third party as anegotiable instrument. The holder of a promissory note who wants payment before the maturity date can negotiate it by endorsing the note and presenting it to the payer for payment.

See alsoaccommodation paper,note,order
Dictionary of Real Estate Terms
promissory note

a promise to pay a specified sum to a specifiedpersonunder specifiedterms.

Example: Figure 152.

See alsonote
Dictionary of Business Terms
promissory note

negotiable instrumentwherein the maker agrees to pay a specific sum at a definite time- often simply called a note.


Related Terms:
Dictionary of Banking Terms
accommodation paper

promissory note or negotiable instrumentsigned by a third party, who acts as accommodation maker, endorser, or party.


Dictionary of Banking Terms
note

Dictionary of Banking Terms
order

Investments: instruction to a broker or dealer to buy or sell securities or commodities. Securities orders fall into four basic categories: market order, limit order, time order, and stop order.
Law: direction from a court of jurisdiction, or a regulation.
Negotiable instruments: payee's request to the maker, as on a check stating, "Pay to the order of (when presented by) John Doe."
Trade: request to buy, sell, deliver, or receive goods or services which commits the issuer of the order to the terms specified.


Dictionary of Real Estate Terms
note

Referring Terms:
note
bond


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promissory note