promissory note

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.

[1700-10]

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Short-term credit instrument consisting of a written promise by one person to pay a specified amount of money to another on demand or at a given future date.

Promissory notes were in use in Europe as early as the Renaissance. They are often negotiable and may be secured by the pledge of collateral. The instrument changed substantially during the 20th century, when various clauses were added regarding payment and other provisions

for example, authorizing the sale of collateral, permitting extensions of time, and allowing acceleration of payment in the event of default. See also bill of exchange.

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▪ finance

      short-term credit instrument consisting of a written promise by one person (maker) to pay a specified amount of money to another on demand or at a given future date. Promissory notes are often negotiable and may be secured by the pledge of collateral.

      Promissory notes were in use in Europe during the Renaissance. The instrument changed substantially during the 20th century, both in form and use; clauses were added, including those that authorize the sale of collateral, permit extensions of time, and permit acceleration of payment in event of default.

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