Simple English definitions for legal terms
Read a random definition: Uniform Juvenile Court Act
A coupon note is a type of promissory note that has attached interest coupons that the holder can present for payment as each coupon matures. A promissory note is a written promise by one party to pay money to another party or to bearer. It is a two-party negotiable instrument, unlike a draft which is a three-party instrument.
The examples illustrate the different types of promissory notes. A floating-rate note has a variable interest rate that changes periodically, while a balloon note has small periodic payments and a large final payment. A coupon note has attached interest coupons that the holder can present for payment as each coupon matures.