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a promissory note promissory note is evidence of a promise to pay its a financing instrument that is evidence of a promise to pay a specific money amount to a specific person within a specific frame of time the promissory note must be signed by the borrower it must be provided by the borrower and is actually evidence of a part of the bars obligation to pay the payee is the person lending the money the payor is the person who promises to repay the funds different types of promissory notes sometimes they just call them the note a straight note is whats called an interest-only loan its only for the interests a fully amortized loan is also called a self-liquidating loan or a self-liquidating note is designed to pay off the entire balance if you get a 30-year fully amortized loan or self-liquidating loans at the end of that term the whole thing is paid off partially amortized these are known as balloon payments the only tax partially amortized for a short period of time and negative am