Summary
A promissory note is a written promise to pay money to someone. Its primary function is to serve as written evidence of the amount of a debt and the terms under which it will be repaid, including the rate of interest (if any). This helps both the lender and borrower know exactly what the expectations and plans for repayment are.
This promissory note is often used when the borrower won’t be able to repay the loan for a period of months or years. It allows the borrower to make annual payments of interest only until the principal is due.
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