NOTE

Black’s Law Dictionary 7th Edition, pages 1085-1087:

note, n. 1. A written promise by one party (the maker) to pay money to another party (the payee) or to bearer. • A note is a two-party negotiable instrument, unlike a draft (which is a three-party instrument). – Also termed promissory note. Cf. DRAFT ( 1 ) .

accommodation note. A note that an ac­ commodating party has signed and thereby assumed secondary liability for; ACCOMMODA· TION PAPER.

approved indorsed note. A note indorsed by a person other than the maker to provide additional security.

balloon note. A note requiring small period­ ic payments but a very large final payment. • The periodic payments usu. cover only inter­ est, while the final payment (the balloon pay­ ment) represents the entire principal.

banknote. See BANKNOTE.

blue note. A note that maintains a life-insur­ ance policy in effect until the note becomes due .

bought note. A written memorandum of a sale delivered to the buyer by the broker responsible for the sale.

circular note. See LETTER OF CREDIT.

coal note. Hist. A promissory note written according to a statute that required payment for coal out of any vessel in the port of London to be in cash Qr by promissory note containing the words “value received in

coal . ” • Noncompliance with the sulted in a fine of £199.

cognovit note. See COGNOVIT NOTE.

collateral note. See secured note.

statute re­

coupon note. A note with attached interest coupons that the holder may present for pay­ ment as each coupon matures.

demand note. A note payable whenever the creditor wants to be paid. See call loan under LOAN.

executed note. A note that has been signed and delivered.

floating-rate note. A note carrying a varia­ ble interest rate that is periodically adjusted within a predetermined range, usu. every six months, in relation to an index, such as Trea­ sury bill rates. – Also termed floater.

hand note. A note that is secured by a collateral note.

installment note. A note payable at regular intervals. – Also termed serial note.

inverse-floating-rate note. A note struc­ tured in such a way that its interest rate moves in the opposite direction from the un­ derlying index (such as the London Interbank Offer Rate). • Many such notes are risky investments because if interest rates rise, the securities lose their value and their coupon earnings fall. – Also termed inverse floater.

joint and several note. A note for which multiple makers are jointly and severally lia­ ble for repayment, meaning that the payee may legally look to all the makers, or any one of them, for payment of the entire debt. See joint and several liability under LIABILITY.

joint note. A note for which multiple makers are jointly, but not severally, liable for repay­ ment, meaning that the payee must legally look to all the makers together for payment of the debt. See joint liability under LIABILITY.

mortgage note. A note evidencing a loan for which real property has been offered as secu­ rity.

negotiable note. See NEGOTIABLE INSTRU­ MENT.

nonrecourse note. A note that may be satis­ fied upon default only by means of the collat­ eral securing the note, not by the debtor’s other assets. Cf. recourse note.

note of hand. See promissory note.

premium note. A promissory note given by an insured to an insurance company for part or all of the premium.

promissory note. An unconditional written promise, signed by the maker, to pay abso­ lutely and in any event a certain sum of money either to, or to the order of, the bearer or a designated person. – Also termed note of hand.

recourse note. A note that may be satisfied upon default by pursuing the debtor’s other assets in addition to the collateral securing the note. Cf. nonrecourse note.

reissuable note. A note that may again be put into circulation after having once been paid.

renewal note. A note that continues an obli­ gation that was due under a prior note.

sale note. A broker’s memorandum on the terms of a sale, given to the buyer and seller.

note, vb. 1. To notice carefully or with particu­ larity <the defendant noted that the plaintiff seemed nervous>. 2. To put down in writing

<the court reporter noted the objection in the record>. 3.Archaic. To brand <as punishment, the criminal was noted > . See NOTA.

note broker. See BROKER.

note of a fine. Hist. English law. A step in the judicial process for conveying land, consisting of a chirographer’s brief of the proceedings before the documents of conveyance are en­grossed. – Also termed abstract of a fine. See FINE .

note of allowance. English law. A master’s note, upon receiving a party’s memorandum of an error of law in a case, allowing error to be asserted.

note of hand. See promissory note under NOTE (1). PI. notesofhand.

note of protest. A notary’s preliminary memo, to be formalized at a later time, stating that a negotiable instrument was neither paid nor ac­ cepted upon presentment. See PROTEST.

note payable. See account payable under AC· COUNT.

note receivable. See account receivable under ACCOUNT.

note verbal (noht ver-bel). Int’l law. An unsigned diplomatic note, usu. written in the third person, that sometimes accompanies a diplomatic message or note of protest to further explain the country’s position or to request certain action. – Also spelled note verbale (vair-bahl) .

hand note.A note that is secured by a collateral note.
installment note.A note payable at regular intervals. — Also termed serial note.

inverse-floating-rate note.A note structured in such a way that its interest rate moves in the opposite direction from the underlying index (such as the London Interbank Offer Rate). • Many such notes are risky investments because if interest rates rise, the securities lose their value and their coupon earnings fall. — Also termed inverse floater. [Cases: Interest 32. C.J.S. Interest and Usury; Consumer Credit § 38.]

joint and several note.A note for which multiple makers are jointly and severally liable for repayment, meaning that the payee may legally look to all the makers, or any one of them, for payment of the entire debt. See joint and several liability under LIABILITY. [Cases: Bills and Notes 120. C.J.S. Bills and Notes; Letters of Credit§§ 81, 83, 249.]

joint note.A note for which multiple makers are jointly, but not severally, liable for repayment, meaning that the payee must legally look to all the makers together for payment of the debt. See joint liability under LIABILITY. [Cases: Bills and Notes 120. C.J.S. Bills and Notes; Letters of Credit§§ 81, 83, 249.]

mortgage note.A note evidencing a loan for which real property has been offered as security. [Cases: Mortgages 14. C.J.S. Mortgages §§ 143–150.]

nonrecourse note.A note that may be satisfied upon default only by means of the collateral securing the note, not by the debtor’s other assets. Cf. recourse note. [Cases: Bills and Notes 44; Secured Transactions 227, 240. C.J.S. Bills and Notes; Letters of Credit § 11; Secured Transactions §§ 152, 164–166, 168–169, 172, 174–175, 180–183.]

note of hand.See promissory note.

post note.See time note.

premium note.A promissory note given by an insured to an insurance company for part or all of the premium.

promissory note.An unconditional written promise, signed by the maker, to pay absolutely and in any event a certain sum of money either to, or to the order of, the bearer or a designated person. — Also termed note of hand. [Cases: Bills and Notes 28–53. C.J.S. Bills and Notes; Letters of Credit§§ 2–5, 7–9, 11–16, 22–25, 75, 81, 121, 167, 231, 244–248, 263, 309.]

recourse note.A note that may be satisfied upon default by pursuing the debtor’s other assets in addition to the collateral securing the note. Cf. nonrecourse note. [Cases: Secured Transactions 227, 240. C.J.S. Secured Transactions §§ 152, 164–166, 168–169, 172, 174–175, 180–183.]

reissuable note.A note that may again be put into circulation after having once been paid.

renewal note.A note that continues an obligation that was due under a prior note. [Cases: Bills and Notes 138. C.J.S. Bills and Notes; Letters of Credit §§ 109–113, 117.]