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Illinois promissory notes give an overview of a borrowers legally binding promise to pay back a lender in the state will detail the elements of a promissory note as well as laws specific to the state of Illinois 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 can be a bank or an individual promissory notes are legally binding and are more detailed than a simple IOU form but less comprehensive than a standard loan agreement types of promissory notes promissory notes come in two 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 note 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
