What is a promissory note?

A promissory note is a legally binding document that promises a borrower will repay a lender a certain amount of money on or before a specific date. In Washington, a promissory note is a type of debt instrument that is commonly used as part of debtor and creditor law. A promissory note outlines the obligations of the borrower to the lender, such as repayment amount, interest rate, and length of the loan. When a borrower and lender enter into a contract for a loan, a promissory note is signed by both parties. It outlines the terms of the loan, such as the repayment amount and interest rate, and the due date for the loan. The promissory note also includes information about the rights and obligations of each party, as well as any additional legal protections that may apply to the loan. Once the promissory note is signed, it creates a legally binding contract between the borrower and the lender. If the borrower fails to make payments as required in the note, the lender may take action to collect the debt. Therefore, a promissory note is an important tool to ensure the borrower meets their obligations to the lender and pays back the loan according to the terms outlined in the note.

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What is a promissory note?

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