What is a Promissory Note?

A Promissory Note is a financial instrument specifying a written promise from one party (the issuer or maker of the note) to pay a certain sum of money to another party, either at a specified future date or on demand. This note contains all the terms related to indebtedness, like the principal amount, maturity date, interest rate, date and place of issuance, as well as issuer’s signature.