What is a promissory note?
A note or promissory note is a promise to pay a specific sum of money for specific terms. It can be secured or unsecured. If its secured, the debtor pledges an asset such as a house or car to repay the debt, or the creditor may repossess the asset to get paid back. If its unsecured, the debtor did not have to pledge anything of value to secure the debt.
The note will generally spell out the repayment terms, including the interest rate, payment schedule, due dates, any potential fees and penalties. It will also provide the rights to the lender to repossess the asset should a default occur.
Generally the note is not recorded in land records, but it is tied to the mortgage, which is recorded.
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