Promissory Note
The borrower's written promise to repay a debt, which is the instrument that actually creates the obligation.
Quick flashcard
What does Promissory Note mean on the Texas real estate exam?
Answer: The borrower's written promise to repay a debt, which is the instrument that actually creates the obligation.
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Promissory Note definition
A promissory note is the borrower's written promise to repay a loan on stated terms. It is the document that creates the debt. The note states the amount, the interest rate, the payment schedule, and the terms of repayment.
The note works together with the deed of trust. The note creates the debt; the deed of trust pledges the property as security for that debt and gives a trustee the power of sale.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
From definition to recall
See this term inside a real exam question.
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