Loan note
Loan Note
Loan note.
A loan note is a promissory agreement describing the terms of a loan and committing the person or institution borrowing the money to live up to those terms.
For example, a mortgage loan note states the principal balance, the interest rate, the discount points, a payment schedule and due date, and any potential penalties for violating the repayment terms.
When the required repayment has been made, the agreement between the parties ends.