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Alabama promissory notes give an. Of a borrowers promise to pay back a lender in the state. Well detail the elements of a promissory note as well as law specific to the state of Alabama concerning interest rates and signing requirements. What is a promissory note? A promissory note is a relatively straightforward do-it-yourself document that outlines the terms for the borrowing of money and how the borrower will pay back the funds to a lender, which could be a bank or an individual. Promissory notes are legally binding and are more detailed than a simple I O U form, but less comprehensive than a standard loan agreement. Types of promissory notes, promissory notes come into kinds either secured or unsecured. There are advantages and disadvantages to each type of note for both the borrower and the lender in varying situations secured, promissory. A secured promissory note is backed by an asset of value such as a vehicle or a home. If the borrower does not pay back the loan within the
