A "promissory note" is a contract obligating one party to pay or repay a specified dollar amount to another party. Promissory notes are often used in connection with the lending of money. The key terms of promissory notes include:

• The principal amount to be paid
• Interest rate on the principal
• Timing of interest and principal payments
• Events of default under the promissory note
• Whether the note is secured or unsecured

Promissory notes can be due and payable on demand or payable in installments or balloon payments.