GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Promissory Note


Synonyms:note, note payable
Acronyms &
abbreviations:
PN
Filed Under: financial-banking, legal-contracts
Tags: contract, loan
 

Definition of promissory note (PN)

promissory note (PN)
1. A written promise made by a borrower to repay a loan by a specified date.

Related Terms and Acronyms:

  • bank   An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
  • co-signer   A person who signs a promissory note that is also signed by one or more other parties. All parties take responsibility for the debt if any of the others renege.
  • lender   The bank or mortgage company offering the loan.
  • loan   Letting another party use something of value temporarily.
  • loan commitment   A lender's promise to advance a specific sum on specific terms.
  • loan term   The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
  • master promissory note (MPN)
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • note   A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
  • term   The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.

More Related Terms and Acronyms

  • co-makerDefinition
  • demand promissory note (DPN) — Acronym

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