Legal Definitions - joint note

A joint note is a type of promissory note where two or more individuals or entities agree to be *jointly* responsible for a debt. This means that each signatory is obligated to pay the entire amount of the debt, not just a portion. If the debt is not paid, the lender can pursue any one of the signatories for the full outstanding balance.

• Example 1: Car Loan for a Couple
  A married couple, Sarah and Tom, decide to purchase a new car. They apply for a loan from a bank, and both sign the promissory note as co-borrowers. By signing the joint note, both Sarah and Tom are *jointly* liable for the entire car loan. If, for any reason, Tom stops making payments, the bank can demand the full remaining balance from Sarah. Conversely, if Sarah defaults, Tom is still responsible for the entire debt.

• Example 2: Business Startup Loan
  Two friends, Alex and Ben, decide to open a small coffee shop. They secure a business loan from a credit union, and both sign the promissory note as co-borrowers. This is a joint note because both Alex and Ben are *jointly* responsible for repaying the full business loan. If the coffee shop struggles and Alex is unable to contribute his share, the credit union has the legal right to demand the entire outstanding loan amount from Ben.

• Example 3: Home Improvement Loan
  A homeowner, Maria, needs to renovate her kitchen. Her adult daughter, Elena, agrees to co-sign the loan to help Maria qualify for a better interest rate. Both Maria and Elena sign the promissory note. In this situation, Maria and Elena have signed a joint note, meaning they are *jointly* liable for the home improvement loan. If Maria encounters financial difficulties and cannot make the payments, the lender can legally pursue Elena for the full amount of the outstanding debt, even though Elena may not directly benefit from the kitchen renovation.