promissory note

/ˌprɑməˈsɔri ˌnoʊt/

/ˈprɒmɪsɔri nəʊt/

Other forms: promissory notes

A promissory note is a legal document in which a person or institution promises to pay a debt. You could call a promissory note an official I.O.U.

The term promissory note is often shortened to note, and it's used by attorneys and financial experts like accountants and mortgage brokers. Paper money actually functions as a promissory note — originally, that's exactly what a bill was, a note issued by a bank promising to pay, in gold or silver, the person holding it. The word promissory means "implying a promise," from the same Latin root as promise.

Definitions of promissory note

1. noun

   a promise to pay a specified amount on demand or at a certain time
   synonyms: note, note of hand

   types:

   demand note

   a note payable on demand

   note receivable

   your right in a promissory note in which the maker promises to pay a certain amount of money at a certain time

   note payable

   a note promising to pay a certain amount of money at a certain time

   municipal note

   a municipal debt instrument with a maturity of less than 2 years

   IOU

   an informal debt instrument; representing `I owe you'

   time note

   a note that specifies the time (or times) of repayment

   type of:

   certificate of indebtedness, debt instrument, obligation

   a written promise to repay a debt