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Simple English definitions for legal terms
bought and sold notes
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A quick definition of bought and sold notes:
Bought and Sold Notes: These are two pieces of paper that a broker uses to keep track of the sale of a note. One note is sent to the person who bought the note, and the other note is sent to the person who sold the note. It helps the broker keep track of who bought and sold the note.
A more thorough explanation:
Definition: Bought and sold notes are two memoranda created by a broker to document the sale of a note. The broker sends the bought note to the purchaser and the sold note to the seller.
Example: Let's say John wants to sell a promissory note to Jane. John contacts a broker who helps him find a buyer. The broker creates two memoranda: a bought note and a sold note. The bought note is sent to Jane to show that she has purchased the note, and the sold note is sent to John to show that he has sold the note.
Explanation: The bought and sold notes are important documents that provide evidence of the sale of a note. The bought note is proof that the purchaser now owns the note, while the sold note is proof that the seller has sold the note. These notes are typically used in financial transactions and can be helpful in resolving any disputes that may arise.