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Promissory Note Information What is a promissory note?
speci몭c sum of money back to another, the Lender. It is a document that typically spells out the details of the loan, including the terms of repayment, interest charged, if any, late fees and what happens if the loan is not repaid. Feedback
A Promissory Note is a promise by one party, the Borrower, to pay back a
Promissory notes are more formal than a simple IOU and create a legal obligation to repay a loan. What is the different between a Secured Promissory Note and an Unsecured one? Some promissory notes are secured by collateral, meaning that if the Borrower does not repay the loan within the given timeframe, then the Lender may take the collateral, which is typically an asset or a property. Other promissory notes are unsecured, meaning that an asset or
property does not back the note. Therefore, the Lender has no way to ensure that it will receive its money back if the borrower should default. When should I use a Promissory Note?