What is "promissory note"

Promissory \Prom"is*so*ry\, a. Containing a promise or binding declaration of something to be done or forborne.

Promissory note (Law), a written promise to pay to some person named, and at a time specified therein, or on demand, or at sight, a certain sum of money, absolutely and at all events; -- frequently called a note of hand.
--Kent. Byles. Story.

n. (context finance English) A document saying that someone owes a specific amount of money to someone else, often with the deadline and interest fees.

n. a promise to pay a specified amount on demand or at a certain time; "I had to co-sign his note at the bank" [syn: note, note of hand]

A promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. If the promissory note is unconditional and readily salable, it is called a negotiable instrument.

Referred to as a note payable in accounting (as distinguished from accounts payable), or commonly as just a "note", it is internationally defined by the Convention providing a uniform law for bills of exchange and promissory notes, although regional variations exist. A banknote is frequently referred to as a promissory note: a promissory note made by a bank and payable to bearer on demand. Mortgage notes are another prominent example.