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 Says:
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 Terms:
Bill Of Exchange
Certificate Of Deposit - CD
Debt
Floating-Rate Note - FRN
Forfaiting
Note |