Promissory Note

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A promissory note is a written instrument that documents or records a transaction where money is loaned or owed from one party to another. The terms of the loan, the repayment schedule, the interest rate (if any), where the payments are to be made, etc., are included in the note. The note is signed by the person borrowing the money. The note is then kept by the person lending the money as evidence of the loan and the repayment agreement (with a copy usually provided to the borrower). The term commercial paper includes written instruments (such as promissory notes) or orders (such as checks) to pay money.

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