Talk:Promissory note

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Demand Note[edit]

There is another very common financial and legal use for the term "Demand Note", which is a promissory note that is payable upon demand by the lender (rather than having a term). I think we should create a stub article and disambiguation page to distinguish the use, or add a footnote to this article making the point. Sam 16:01, 24 May 2006 (UTC)

Spam template[edit]

A commercial link has appeared three times on this article after being removed for a company known as Loan Back. The template was added to warn users of this link. The users that added the link was twice public, and once authenticated as Loanback. User has been warned. PsYoP78 15:24, 2 August 2006 (UTC)

Legal status outside the US[edit]

I would be interested to know the legal status of Promissory Notes in Europe. All the information I have been able to find on the web re this subject deals only with US law. Are Promissory Notes valid in the EU? And if so, how are they enforced? MM

No idea, but they were in common use in Australia historically in commercial transactions, especially those relating to stock trade (i.e. sheep/cattle etc). I presume the purpose in those situations was often that the funds to pay would come from the value derived from ownership of the stock. I'm not sure to what extent they're used today. Orderinchaos 07:44, 24 August 2008 (UTC)
The promissory note are regulated with an international treaty sign in Geneva in 1930.
The name of this treaty in English is: Convention providing a uniform law for bills of exchange and promissory notes
Here the whole text:
The name of this treaty in french is: Convention destinée à régler certains conflits de lois en matière de lettres de change et de billets à ordre
The name of this treaty in Italian is: Convenzione per risolvere certi conflitti di leggi in materia di cambiali e di vaglia cambiari
-- (talk) 01:28, 7 August 2011 (UTC)
I know that in commodities trade we use promissory notes extensively with our Latin American clients. The format isn't popular in the EU or in Asia, where they rely more on letters of credit.
Further to the above you can find a list of the signatory countries here. -- Edmond8674 (talk) 14:59, 8 July 2015 (UTC)

Totldork's answer[edit]

Promissory Notes are acceptable anywhere they are recognized as money, which is anywhere there is a bank that is a member of the International Monetary Fund (IMF). This is the UN's bank established by the bankers of the Federal Reserve.

Since the beginning of known civilization sovereign countries and free men have continually developed languages in an attempt to communicate and cooperate. As such, there is always a continuing need for ongoing teaching, agreement and understanding of Natural Law in the present day, on the cutting edge of human experience.

Many of our most foundational understandings of Natural Law have been learned and taught and relearned so many times that it has become unecessary to ejudicate them anymore. These become known as maxims. Out of these maxims have come several volumes of laws and rules that are further attempts at codifying Natural Law into a universally acceptable set of ideas that any two sovereign persons can rely on. Sovereigns being further described as any corporations, merchants, individuals, countries, banks, etc thats involved in any kind of commercial transactions. Hence, the idea of Merchant Law most often referred to in the international, a.k.a. 'admiralty' jurisdictions. The UCC or Uniform Commercial Code is our modern day codification of Merchant Law as developed out of centuries of world-wide commerce.

In the UCC, it explains what is commonly accepted among bankers as money. Bills of Exchange, Promissory Notes, Drafts and like are common forms of money that are as old as commerce itself. In fact, all the worlds currencies, including the Federal Reserve Note, is just that, a promissory Note. The note is only given value when any two or more parties agree that it has a specific value. Otherwise, it's just paper!

The short answer then being, Promissory notes are legal and common forms of exchange at any bank in the world that can verify its value. This would be at least any bank under the IMF, which is just about all of them. Enforcement jurisdiction, I imagine, varies depending on how any two parties might agree to do so. An International Law specialist might know about common practices and standards specific to the industry. Hope this rambling was as helpful for you as it was for me! —Preceding unsigned comment added by Totldork (talkcontribs)

I don't think the above poster knows what he is talking about...promissory notes have nothing to do with admiralty law or the International Monetary Fund, and the Uniform Commercial Code has little connection with the merchant law of pre-modern times. The IMF was not founded by the Federal Reserve, and its members are countries, not banks. --Eastlaw (talk) 02:20, 3 January 2008 (UTC)

Legal Elements of a Promissory Note[edit]

I appreciate your entry about promissory notes.

I wonder if you could clarify what the essential elements of a promissory note are, if there are any, to make the note legal. For example, I recently found a copy of a promissory note that is only signed by the people who were the promisors. Does it need any other signatures? Does it need to be notarized? (There is a mortgage and a 2nd mortgage associated with it, and I have them as well.) —Preceding unsigned comment added by (talk) 16:51, 30 October 2007 (UTC)

Does the LENDER need to sign a promissory note (based on an unsecured loan)? —Preceding unsigned comment added by (talk) 20:13, 18 August 2009 (UTC)

In order to be valid, a promissory note has to be signed by the debtor company plenipotentiary, and better printed on the company letterhead, stamped and notarized. The notarization adds a level of security as an accredited notary certifies that the promissory note in in due form and signed by the relevant person. -- Edmond8674 (talk) 15:04, 8 July 2015 (UTC)

Conditions for repayment[edit]

According to, a promissory note is "a written promise to pay at a fixed or determinable future time a sum of money to a specified individual or to bearer" (i added the emphasis), which the article omitted in the IOU discussion; combined with the bafflegab "affirmative undertaking" -- a combination of two vague abstractions, that lack left the sentence useless.
The lk to IOU in that passage is also unacceptable: IOU is a Dab, and the closest we have to a corresponding article is the passage that lk'd to the Dab. The treatment here must be expanded so it makes some kind of sense to non-lawyers. Examples would be great.
--Jerzyt 05:32, 19 July 2008 (UTC)

According to a very brief mention in a textbook I have, there are two types of promissory note, "time" and "demand" - time being the sort of situation you're describing and demand meaning "on demand", meaning the person making the loan can recall the amount in a legally enforceable manner in a short time (usually a few days). Orderinchaos 07:47, 24 August 2008 (UTC)
I created a stub article for IOU (debt) and linked to that, though I'm not sure if ultimately there'll be enough specific info to merit a separate article. ENeville (talk) 16:33, 6 October 2008 (UTC)