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Simple English definitions for legal terms
executed note
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A quick definition of executed note:
An executed note is a written promise to pay money from one person to another. It's like a special kind of letter that says "I promise to give you this much money." There are different types of notes, like ones that have to be paid all at once or ones that have small payments over time. When someone signs and delivers a note, it becomes an executed note.A more thorough explanation:
An executed 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. Once the note has been signed and delivered, it is considered executed.
Examples of different types of notes include:
- Promissory note: An unconditional written promise to pay a certain sum of money to the bearer or a designated person.
- Balloon note: A note requiring small periodic payments but a very large final payment.
- Collateral note: A note backed by a pledge of real or personal property as collateral.
- Joint and several note: A note for which multiple makers are jointly and severally liable for repayment.
- Mortgage note: A note evidencing a loan for which real property has been offered as security.
These examples illustrate the different types of notes that can be considered executed once they have been signed and delivered. They represent a legal obligation to pay the specified amount of money to the designated party or bearer.