Promissory Notes

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Promissory Notes

What is a Promissory Note?

A Promissory Note is a written, signed and dated two-party negotiable instrument containing an unconditional promise by the maker (or obligor, payor, promisor) to pay a definite sum of money to a payee (or promisee, holder) on demand or at a specified future date.

It is often used as a means to borrow funds or take out a loan. So it's basically a promise to pay a certain amount of money to someone, on demand, or at a specified time.

The only difference between a promissory note and a bill of exchange is that the maker of a note pays the payee personally, rather than ordering a third party to do so.

Do Banks legally HAVE to accept Promissory Notes?

Lord Denning says Promissory Notes MUST be treated as cash!

Case Law:

A Lord Denning judgement that says a bill of exchange once tendered has to be treated as cash... The principle is that a bill, cheque or note is given and taken in payment as so much cash, and not as merely given a right of action for the creditor to litigate a counter-claim (see Jackson v Murphy [1887] 4 T.L.R. 92). "We have repeatedly said in this court that a bill of exchange or a promissory note is to be treated as cash. It is to be honoured unless there is some good reason to the contrary"

(see per Lord Denning M.R. in Fielding & Platt Ltd v Selim Najjar [1969] 1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA)

Download New Promissory Note Template

New Promissory Note

We now have improved the design and incorporated powerful sacred geometry, although the original is available below. Firstly download the background image and print it out on a high quality setting. It is a large image so may take a few seconds to appear when you open the file.

The documents open as a Microsoft Word Document, however if you do not have a Word installed, get a copy of LibreOffice FREE Office Suite, Open Source software for Windows, Mac and Linux. For iPhones and iPads, install the FREE app Documents Free- Mobile Office Suite, from the App Store.

Download Promissory Note

If you've upgraded your account, your name will automatically appear in the document in the correct format and in the correct place over the background image.

Info - If you're using Open Office, or Libre Office, the font may be hiding behind the background image. To bring the text to the front, you need to:
  1. right click on background image
  2. click on 'Arrange'
  3. then click on 'Send to back'

This should bring the text to the foreground and make it visible and editable

Download Original Promissory Note Template

The document opens as a Microsoft Word Document, however if you do not have a Word installed, get a copy of Open Office here http://download.openoffice.org/ or for Macs, download Libre Office here https://www.libreoffice.org/download/

It is a large image so may take a few seconds to download and then to appear when you open the file. After making any necessary changes to the layout or text, print it out on a high quality setting.

Please note: the page orientation for both image and text must be changed from portrait to landscape in the text editor program if this doesn't happen automatically.

Download Prom Note

If you've upgraded your account, your name will automatically appear in the document in the correct format and in the correct place over the background image.

Covering Letter

Now download the covering letter, which you send along with your Promissory Note, or hand to the cashier, if paying in person. If you've upgraded your account, your details will automatically appear in the letter in the correct format.

Covering Letter

Have Fun!

Please note- although organizations are legally obliged to accept this method of payment and many members have had success with it, we can offer no guarantee that it will be accepted as payment. We cannot accept any liability for this information, which we make available for educational purposes only. Please see our terms and condition for further information. We do not suggest you use these for mortgages unless you have fully researched this yourself and know what you are doing.

Promissory Note support on the Get Out of Debt Free Forum

Do share your experiences on the forum where any questions or queries may be posted, Promissory Note excerpt below.