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Definition of promissory note - 5 dictionary results

promissory note

–noun
1. a written promise to pay a specified sum of money to a designated person or to his or her order, or to the bearer of the note, at a fixed time or on demand.
2. a written promise to do or provide something, usually presented as a gift and claimable when or however the recipient chooses.

Origin:
1700–10
promissory note  
n.   Abbr. p.n. or P/N
A written promise to pay or repay a specified sum of money at a stated time or on demand. Also called note of hand.

Promissory Note

A written, dated and signed two-party instrument containing an unconditional promise by the maker to pay a definite sum of money to a payee on demand or at a specified future date.

Investopedia Commentary

The only difference between a promissory note and a bill of exchange is that the maker of a note pays the payee personally, rather than ordering a third party to do so.

When a bank is the maker promising to repay money it has received plus interest, the promissory note is called a certificate of deposit (CD).

Related Links

Promissory Notes Can Be Less Than Promised
Money Market Tutorial

See also: Bill Of Exchange, Certificate Of Deposit - CD, Debt, Floating-Rate Note - FRN, Forfaiting, Note

Also spelled: promisory, promisery, promissery, promisorry, promissorry


promissory note

See note 1.


Main Entry: promissory note
see NOTE
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