What do you call the person who executes a promissory note?
Asked by: Dr. Nyasia Roberts | Last update: January 29, 2026Score: 4.6/5 (37 votes)
The person who executes (signs and is primarily liable on) a promissory note is called the maker, also known as the borrower, obligor, or promisor, who promises to pay a specific sum to the payee (lender). They are the ones creating the debt obligation and are responsible for repayment as outlined in the legally binding document.
Who executes a promissory note?
Anytime there is a transaction where money is lent between individuals or entities, a promissory note should always be executed by the lender and borrower.
What do you call the person who writes a promissory note?
We often refer to a promissory note as simply a note. The person that makes the promise is called the maker, and the person who is entitled to payment is the payee.
What do you call a person who makes a promissory note?
Drawer or Maker or Debtor or Promisor: The person who draws or make the promissory note. Drawee or Payee or Creditor or Promisee: The person in whose favour the promissory note is drawn is called promisee.
Who is the bearer of a promissory note?
The individual who issues a negotiable instrument is known as the 'payer' or 'issuer,' and the person who receives a negotiable instrument is known as the 'bearer' or 'payee'.
Promissory Note | Meaning of Promissory Note | वचन पत्र | Promissory Note explained in Hindi
What is the party who writes or creates a promissory note called?
The party who makes the promise to pay is called the maker or payer and the party in whose favour the promissory note is made is called the drawer or payee. A promissory note is a negotiable instrument governed by the Negotiable Instruments Act.
Who is the holder of a promissory note?
Drawee: the person in whose favor the promissory note is drawn and who is meant to receive the payment. He is also called the promisee, the payee, the creditor. Bearer: the person who holds a promissory note. He is also called the holder.
Does a promissory note hold up in court?
Legally Binding: Promissory notes are enforceable in court if properly drafted and signed. Essential Components: A valid promissory note includes loan details, repayment terms, interest rate (if applicable), and signatures.
What is the person who contracts a promise called?
In contracts, the promisor makes a promise while the promisee receives that promise. Both parties have specific obligations: the promisor must complete the performance (fulfilling contract terms), and the promisee must provide consideration (payment or something valuable).
What are the two types of promissory notes?
There are two types of promissory notes often used to evidence a loan or debt. One type is referred to as “demand” promissory note because the note is payable at any time on demand by the lender. The other type is “with distinguishing characteristics.” A demand note is theoretically due from the moment it is executed.
Who prepares a promissory note?
The promissory note is issued by the lender, signed by the borrower, and then witnessed and initialized by the lender. Once signed, it becomes a legally enforceable document. The payment terms can be whatever the borrower and lender agree to.
Who signs the master promissory note?
Students receiving first-time Federal Direct Loans must complete Entrance Counseling and sign the Master Promissory Note (MPN) prior to the disbursement of funds. Entrance Counseling and signing of MPNs are completed online at www.studentaid.gov.
Who is the person who borrows money and signs a promissory note is called the payee?
Once two people enter into a promissory note, the individual who promises to pay is called the payer (borrower). The person who is owed payment is called the payee (lender). Both the payer and payee have legal obligations when a promissory note is signed and dated.
What is the person who writes a promissory note called?
Definition of Promissory Note
The maker of the promissory note is known as the borrower or debtor and records the amount owed in a liability account such as Notes Payable.
Who are the two key parties to a promissory note?
Typically, there are two parties to a promissory note: The promisor, also called the note's maker or issuer, promises to repay the amount borrowed. The promisee or payee is the person who gave the loan.
Is a promissory note legal without being notarized?
It's a common belief or assumption that you must have a notary public present to observe the signing of a promissory note. However, generally, a promissory note doesn't have to be notarized in order to be valid. Promissory notes don't have to be notarized in most cases.
What is a signatory vs. signer?
A signatory signs a document and can be an individual or an entity. Signatories are legally bound by the terms and conditions laid out in the agreement. Signer is a more general term and refers to a person who needs to sign a document. These documents can even be checks and forms.
What do you call the person who contracts you?
A contractor is someone who does contract work, and a contractee would be the one hiring the contractor for their services. A business owner hiring a contractor for construction work would be the "contractee".
Who is a promissor?
A promisor is a person who makes a promise to a promisee, typically as part of a contractual agreement. If the contract is enforceable, the promisor has a legal obligation to fulfill the terms of the promise.
How do you legally enforce a promissory note?
In general, however, the first step to enforcing the note is to send a demand letter to the borrower. If no response to the demand is received, a collections lawyer can subsequently file a complaint with the court. Depending on the amount owed, a lawsuit may be filed in the Special Civil Part or Law Division.
What voids a promissory note?
A promissory note is invalid if it lacks the borrower's signature, clear terms, or fair clauses, such as reasonable interest rates. Losing the original document or unauthorized alterations can void the note. Notarization or witnesses are not mandatory but add legal protection, especially for unfamiliar parties.
What is another name for a promissory note?
Depending on your state, a Promissory Note may also be known as: Loan Agreement. IOU. Note Payable.
Who is the guarantor responsible person?
A guarantor is a person who agrees to take financial responsibility for another person's lease if they cannot meet their financial obligation under a lease, explains Equifax. Guarantors are typically used when a tenant does not meet the landlord's requirements for a lease, such as minimum income or credit score.
Who completes the master promissory note?
A MPN is an agreement to repay the loan; the borrower must sign the MPN! Make sure that the parent borrower who applied for the loan is the one signing the Parent MPN.
Who is the party to whom the promissory note is payable?
(A) A payee is someone in whose name a promissory note is being issued and who is eligible to receive the payment at some future date. The payee's name is written in a note by the payer as a legal instrument for giving the promise to make payment. The party to whom the note is payable is the payee.