Also known as a note. A document evidencing a loan made by one party (the payee) to another (the maker). The promissory note contains an unconditional promise by the maker to repay all sums borrowed under the note to the payee (or to his order, or to bearer) on specified terms. Promissory notes can either be stand-alone documents, containing all the terms of the loan transaction, or short-form documents that refer to an underlying loan agreement as containing the terms of the relationship between the parties. The loan can be payable on demand by the payee (in which case the note is called a demand promissory note) or on a specified date.