LAW 5- Portfolio.pptx - Types of Negotiable Instruments...

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Submitted by: Georrieh Jean F. Cuansing Types of Negotiable Instruments
Promissory Notes A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date. A promissory note typically contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer's signature.
Description A simple promissory note is used to create a written guarantee that money borrowed will be returned to the lender in an agreed-upon manner. Simple Promissory note is considered as a Negotiable instrument because, this notes are used in property which we purchase through bank loan or secured by any trust. 1. Simple Promissory Note Why?
Description Master promissory note by the government, is an agreement that a borrower will repay their loans used for education purposes including the interest charged. Although student loan promissory notes are primarily between a borrower and the government, some students create promissory notes with their parents or other relatives who pay for their education. Student loan promissory notes outline the rights and responsibilities of student borrowers as well as the conditions and terms of the loan. 2. Student Loan Promissory Note Why?
Description Similar to a commercial promissory note, a borrower uses their property as collateral to secure a real estate promissory note. If a borrower defaults on it, the lender can place a lien on the property If this occurs, the information can become public record and affect the borrower’s credit . This type of note carries less risk to the Lender and usually allows the Borrower to pay a lesser interest rate. 3. Real Estate Promissory Note Why?
Description A personal promissory note is used to document a loan between friends or family members. It can be tempting to forego formal documents when lending money to loved ones. But regardless of how well you know someone, having a written record of the loan can help unforeseen disagreements. This note is a debt instruments that allow companies and individuals to get financing from a source other than a bank. This source can be an individual or a company willing to carry the note (and provide the financing) under the agreed-upon terms.

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