A promissory note is a negotiable instrument, wherein one party (the maker or issuer) makes an unconditional promise in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.
Referred to as a note payable in accounting, or commonly as just a "note", it is internationally regulated by the Convention providing a uniform law for bills of exchange and promissory notes. Bank note is frequently referred to as a promissory note: a promissory note made by a bank and payable to bearer on demand.
Read more about Promissory Note: Overview, History, Difference From IOU, Difference From Loan Contract
Famous quotes containing the word note:
“A note as from a single place,
A slender tinkling fall that made
Now drops that floated on the pool
Like pearls, and now a silver blade.”
—Robert Frost (1874–1963)