Identification

• A promissory note is a written, dated and signed instrument whereby a borrower unconditionally promises to pay a debt to a bearer on demand or at a fixed or specified future date. It is a negotiable instrument that you can transfer to someone else by relinquishing it or endorsing it with a hand signature and signing the date on the back.
  
  

Public Record

• Filing a legal instrument at the county clerk or county recorder's office is only necessary in certain situations, and when such documents are recorded, the content of those documents becomes public record. This means it is accessible to the general public for review and copying. In general, the sell or transfer of real property is recorded in a public office, not a promissory note.
  
  

Contract Law

• A promissory note is subject to the rules of contract law. Depending on the state governing the promissory note, the bearer may bring legal proceedings against the borrower if payment is not received by the specified date. This period of time is known as the statute of limitations, and varies from three to 15 years with six years being the average.
  
  

Personal Payment

• The bearer of a promissory note pays the borrower personally, rather than ordering a third party like a financial institution or lending company to do so. When a borrower promises to repay a debt he received plus interest and penalty fees for early withdrawal of the deposited funds, the promissory note is called a certificate of deposit, or CD.