<P> The terms of a note usually include the principal amount, the interest rate if any, the parties, the date, the terms of repayment (which could include interest) and the maturity date . Sometimes, provisions are included concerning the payee's rights in the event of a default, which may include foreclosure of the maker's assets . For loans between individuals, writing and signing a promissory note are often instrumental for tax and record keeping . A promissory note alone is typically unsecured . </P> <P> The term note payable is commonly used in accounting (as distinguished from accounts payable) or commonly as just a "note", it is internationally defined by the Convention providing a uniform law for bills of exchange and promissory notes, but regional variations exist . A banknote is frequently referred to as a promissory note, as it is made by a bank and payable to bearer on demand . Mortgage notes are another prominent example . </P> <P> If the promissory note is unconditional and readily saleable, it is called a negotiable instrument . </P> <P> Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand of the lender . Usually the lender will only give the borrower a few days' notice before the payment is due . </P>

Promissory notes that are freely transferable from one party to another are called