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promissory note |
Also found in: Legal, Encyclopedia, Wikipedia, Hutchinson | 0.01 sec. |
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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. Notes: The only difference between a promissory note and a bill of exchange is that the maker of a note to 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). Promissory note Written pledge to pay.
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