| 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. |
| 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