Sign Illinois Banking Promissory Note Template Computer

Signed promissory note

welcome to my channel learn and earn to live your life on your own terms hello everyone you welcome to my channel learning an academy in today in this video we are going to talk about promissory note now what is a promissory note in how this note is used for making transactions so promissory note is the as the name itself gives a brief description it is a legal financial instrument issued by one party promising to pay the debt owed to another party so I live a very simple example for example I borrow some money from my friend so I am a debtor I have to pay my friend let's suppose 10,000 rupees so my friend is the person who has given the money and I am the person who has taken the money so I owe the debt I will repay that amount to my friend so promised we note it is a legal financial instrument which I can issue to my friend that I will pay this money ten thousand rupees to you maybe after a month and the month of September so this note becomes a promissory note so I hope this concept is absolutely clear it's a written negotiable instrument duly signed by the maker in this case I am the maker I am making the promissory note which contains an unconditional promise so I am making unconditional promise to pay the stated amount of money which is ten thousand rupees in this example to a particular person to my friend on the order of that particular person so my friend may say that you give me money on September 10th so I will mention this date in the promissory note it can either be on demand or unspecified date my friend can give a date and he can not even give a date as well he can demand money anytime as per the promissory note so it's a short-term credit instrument which does not amount to a bank note or a currency note so it's not a currency or money which you can exchange but a promissory note an instrument of promise which is legally valid so what are some of the characteristics of promissory note it is a written document they must be a clear and unconditional promise to pay a certain sum to a specified person or on demand so in this case the promise is made by me to pay my friend ten thousand rupees in the month of September it must be drawn and duly signed by the maker who is the maker in this case I am the maker I am signing the promissory note it must be properly stamped now stamping is important to make it a legal document it specifies the name of the maker and pay okay so maker is me and Bay is my friend whom I have to pay the money the amount to be paid must be certain given in both figures and words so I have to give rupees ten thousand so I will write ten thousand in the promissory note both in figures and in words payment is to be made in countries legal currency so I will make the payment in rupees parties to promise me know now this is something which we need to understand I'll explain this to you in a very simple way let's talk about draw a who is a draw the one who makes tea promised to another to pay the debt is the drawer of the instrument so in my example who is the drawer me I am the drawer I am making the promise to my friend that I will pay the money in the month of September so I am the drama and he or she that is my friend is the debtor or the borrower ok so you have understood all the drama now let's understand who is a drawing now the one in whose favour the note is drawn is redrawing so in this case who will receive the money in September my friend I am going to pay him so he is the drawing so he or she is the creditor who provides goods credit or lends money so my friend is a draw in this example third most important person is pay now the one to whom payment is to be made is the pay of the negotiable instrument so whom the payment is to be made to my friend so he is the payee as well the draw and pay can be the same person when the amount is to be paid to the person on whose favour the note is drawn however when the amount is to be paid 1 and the person on the order of the draw means that if the droid transferred the instrument in favor of another person in that case payee would be different so draw er is me and Roy and paying both is my friend further the party that owes money to honor the party holds the promissory note and after discharging the obligation completely the draw your pain cancels the note and returns to the draw so I hope this concept is absolutely clear to you and you will be able to answer any question on promissory note so if you liked this video can press the like button you can subscribe to our channel and share this video on social media help us to spread education in this beautiful world thank you