note,n.1. A written promise by one party (the maker) to pay money to another party (the payee) or to bearer. • A note is a two-party negotiable instrument, unlike a draft (which is a three-party instrument). — Also termed promissory note. Cf. DRAFT(1). [Cases: Bills and Notes

28. C.J.S. Bills and Notes; Letters of Credit§§ 2–3, 7–9, 12, 22, 75.]

accommodation note.A note that an accommodating party has signed and thereby assumed secondary liability for; ACCOMMODATION PAPER. Cf. GUARANTY(1). [Cases: Bills and

Notes 49, 122. C.J.S. Bills and Notes; Letters of Credit §§ 24–25.]

approved indorsed note.A note indorsed by a person other than the maker to provide additional security.

balloon note.A note requiring small periodic payments but a very large final payment. • The periodic payments usu. cover only interest, while the final payment (the balloon payment) represents the entire principal.

banker’s note.A promissory note given by a private banker or an unincorporated banking institution.

banknote. See BANKNOTE.

blue note.A note that maintains a life-insurance policy in effect until the note becomes due.

[Cases: Insurance 2020, 2027. C.J.S. Insurance §§ 306, 388, 688, 737–739.]

bought note.A written memorandum of a sale delivered to the buyer by the broker responsible

for the sale.

circular note.See LETTER OF CREDIT.

coal note.Hist. A promissory note written according to a statute that required payment for coal out of any vessel in the port of London to be in cash or by promissory note containing the words “value received in coal.” • Noncompliance with the statute resulted in a fine of £100.

cognovit note.See COGNOVIT NOTE.

collateral note.See secured note.

coupon note.A note with attached interest coupons that the holder may present for payment as

each coupon matures.

demand note.A note payable whenever the creditor wants to be paid. See call loan under

LOAN. [Cases: Bills and Notes 129(3). C.J.S. Bills and Notes; Letters of Credit§ 90.]

executed note.A note that has been signed and delivered. [Cases: Bills and Notes 54–62.

C.J.S. Bills and Notes; Letters of Credit §§ 26–32, 34, 197.]

floating-rate note.A note carrying a variable interest rate that is periodically adjusted within a predetermined range, usu. every six months, in relation to an index, such as Treasury bill rates. — Also termed floater. [Cases: Bills and Notes 125; Interest 32. C.J.S. Bills and Notes; Letters of

Credit §§ 84, 100; Interest and Usury; Consumer Credit § 38.] hand note.A note that is secured by a collateral note. installment note.A note payable at regular intervals. — Also termed serial note.

inverse-floating-rate note.A note structured in such a way that its interest rate moves in the opposite direction from the underlying index (such as the London Interbank Offer Rate). • Many such notes are risky investments because if interest rates rise, the securities lose their value and their coupon earnings fall. — Also termed inverse floater. [Cases: Interest 32. C.J.S. Interest and

Usury; Consumer Credit § 38.]

joint and several note.A note for which multiple makers are jointly and severally liable for repayment, meaning that the payee may legally look to all the makers, or any one of them, for payment of the entire debt. See joint and several liability under LIABILITY. [Cases: Bills and

Notes 120. C.J.S. Bills and Notes; Letters of Credit§§ 81, 83, 249.]

joint note.A note for which multiple makers are jointly, but not severally, liable for repayment,

meaning that the payee must legally look to all the makers together for payment of the debt. See joint liability under LIABILITY. [Cases: Bills and Notes 120. C.J.S. Bills and Notes; Letters of

Credit§§ 81, 83, 249.]

mortgage note.A note evidencing a loan for which real property has been offered as security.

[Cases: Mortgages 14. C.J.S. Mortgages §§ 143–150.]

nonrecourse note.A note that may be satisfied upon default only by means of the collateral securing the note, not by the debtor’s other assets. Cf. recourse note. [Cases: Bills and Notes 44; Secured Transactions 227, 240. C.J.S. Bills and Notes; Letters of Credit § 11; Secured

Transactions §§ 152, 164–166, 168–169, 172, 174–175, 180–183.] note of hand.See promissory note.

post note.See time note.

premium note.A promissory note given by an insured to an insurance company for part or all

of the premium.

promissory note.An unconditional written promise, signed by the maker, to pay absolutely and in any event a certain sum of money either to, or to the order of, the bearer or a designated person. — Also termed note of hand. [Cases: Bills and Notes 28–53. C.J.S. Bills and Notes;

Letters of Credit§§ 2–5, 7–9, 11–16, 22–25, 75, 81, 121, 167, 231, 244–248, 263, 309.]

recourse note.A note that may be satisfied upon default by pursuing the debtor’s other assets

in addition to the collateral securing the note. Cf. nonrecourse note. [Cases: Secured Transactions

227, 240. C.J.S. Secured Transactions §§ 152, 164–166, 168–169, 172, 174–175, 180–183.] reissuable note.A note that may again be put into circulation after having once been paid.

renewal note.A note that continues an obligation that was due under a prior note. [Cases:

Bills and Notes 138. C.J.S. Bills and Notes; Letters of Credit §§ 109–113, 117.]

sale note.A broker’s memorandum on the terms of a sale, given to the buyer and seller. savings note.A short-term, interest-bearing paper issued by a bank or the U.S. government.

secured note.A note backed by a pledge of real or personal property as collateral. — Also

termed collateral note.

self-canceling installment note.A debt obligation that is automatically extinguished at the creditor’s death. • Any remaining balance on the note becomes uncollectible. Self-canceling notes are typically used in estate planning. — Abbr. SCIN.

serial note.See installment note.

sold note.A written memorandum of sale delivered to the seller by the broker responsible for

the sale, and usu. outlining the terms of the sale. See CONFIRMATION SLIP.

stock note.A note that is secured by securities, such as stocks or bonds.

tax-anticipation note.A short-term obligation issued by state or local governments to finance current expenditures and that usu. matures once the local government receives individual and corporate tax payments. — Abbr. TAN. [Cases: Municipal Corporations 908. C.J.S. Municipal

Corporations §§ 1646, 1652.]

time note.A note payable only at a specified time and not on demand. — Also termed post

note. [Cases: Bills and Notes 129. C.J.S. Bills and Notes; Letters of Credit §§ 86–89, 91–99.] treasury note.See TREASURY NOTE. unsecured note.A note not backed by collateral.

2. A scholarly legal essay shorter than an article and restricted in scope, explaining or criticizing a particular set of cases or a general area of the law, and usu. written by a law student for publication in a law review. — Also termed comment; lawnote. Cf. ANNOTATION. 3. A minute or memorandum intended for later reference; MEMORANDUM(1).

broker’s note.A memorandum, usu. one authorizing a broker to act as a principal’s agent, that

is prepared by the broker and a copy given to the principal.

note,vb.1. To observe carefully or with particularity <the defendant noted that the plaintiff seemed nervous>.2. To put down in writing <the court reporter noted the objection in the record>.3.Archaic. To brand <as punishment, the criminal was noted>. See NOTA.

[Blacks Law 8th]