Promissory Note

Promissory Note is a financial instrument that contains a written guarantee by one party to repay another party a definite amount of money either on demand or with a specified future day. A promissory note contains every one of the terms pertaining on the indebtedness by the actual issuer or maker on the note’s payee, including the amount, interest charge, maturity date along with issuer’s signature. The 1930 international convention that governs promissory notices and bills associated with exchange also stipulates which the term “promissory note” should be inserted by the body processes of the instrument and should contain an unconditional promise to repay.