A promissory note is a written promise made by one person or party to repay a loan or debt on a specified future date to another person or party.
The main features of a promissory note are as follows:
-Maker
The maker is the person that signs the note
-Payee
The payee is the person to whom the payment is to be made
-Date of the note
Is the date on which the note is made
-Term of the note
Is the length of time until the note is due for payment
-Face value
Is the amount stated on the note
-Maturity value
Is the total sum of money which the payee will receive on the maturity date
-Maturity date
Is the date on which the maturity value is due
Example :
In the promissory note above,
a) The maker is Siti Nurhalijah
b) The payee is Britney Spears
c) Maturity value of the note,
Maturity value = face value + interest due
= 2500 + 2500 x 0.06 x 60/360
= Rm2525
------------------------------------------------------------------------------------------------
Examples of promissory note,
(This empty promissory note above is from the year 18xx)
(This promissory form above is from THE BANK OF UNITED STATES)
I think that's all for this topic.
Till then,
Zamir
5 comments:
now this post make me puzzled. what is the diff between this one and normal cheque?
faisal : well, this one is called promissory note. promissory came from the word promise. this note is a written promise made by one person to repay a loan or debt on a specified future date to another person. understand?
ok. but if the person couldn't manage to do so, what is the consequence?
seriously, i don't know abt that!
they will have to change the date of the contract with more interest rate. if not the debtor can be imprisoned.
Post a Comment