A written unconditional promise to pay the bearer, or another party named therein, a certain sum of money at a time specified. Generally, the promissory note also contains the terms of payment, including the interest rate, grace period, maturity date, or a provision indicating the promissory note is payable on demand. The promissory note may also indicate that it is secured by mortgage and specify the penalties for default.
[Last updated in July of 2020 by the Wex Definitions Team]