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A "promissory note" is a legal document that outlines a promise to pay back a loan. It includes details such as the amount of the loan, the interest rate, and the payment schedule.
For example, let's say that Jane borrows $10,000 from a bank to buy a car. To document the loan, the bank requires Jane to sign a promissory note that outlines the terms of the loan, such as the interest rate and the payment schedule.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
A promissory note is a loan's written vow,
To pay back the money, somehow, somewhow.
It outlines the terms, like the interest rate,
And the payment schedule, oh what a date.