PROMISSORY NOTE Meaning and
Definition
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A promissory note is a legally binding document that serves as a written promise made by one party to another to repay a specific amount of money within a specified time frame. It is essentially a written contract or agreement to repay a debt or loan.
In a promissory note, the party borrowing or receiving the money, known as the maker or issuer, pledges to repay the principal amount along with any agreed-upon interest. The party lending or providing the funds, known as the payee or holder, is the recipient of the promise to repay.
The promissory note typically includes key details such as the names of the parties involved, the amount of money borrowed, the interest rate (if applicable), the repayment terms, and the maturity date or due date for full repayment. It may also include additional terms and conditions agreed upon by both parties.
Promissory notes can be used for various types of financial transactions, including personal loans, business loans, student loans, mortgages, and other forms of credit. They provide a record and evidence of the borrower's promise to repay the debt and outline the terms under which the repayment will be made.
The promissory note is a legally enforceable document, allowing the payee to seek legal remedies if the maker fails to fulfill their obligations according to the specified terms.
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A written promise to pay a certain sum at a certain time specified, in consideration of value received by the. promiser; to promise one's self, to be assured; to have strong confidence.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for PROMISSORY NOTE
- oromissory note
- lromissory note
- -romissory note
- 0romissory note
- peomissory note
- pdomissory note
- pfomissory note
- ptomissory note
- p5omissory note
- p4omissory note
- primissory note
- prkmissory note
- prlmissory note
- prpmissory note
- pr0missory note
- pr9missory note
- pronissory note
- prokissory note
- projissory note
Etymology of PROMISSORY NOTE
The word "promissory note" has Latin origins. It can be traced back to the Latin term "promissum", which means "promise" or "declaration to pay". The term "note" is derived from the Latin word "nota", which means "mark" or "written record". Thus, the combination of "promissum" and "nota" forms the term "promissory note", which refers to a written document that contains a legally binding promise to pay a specific sum of money at a predetermined time in the future.
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