0
A modern government issued currency note is not a promissory note, although currency did evolve from the concept of a promissory note.
A promissory note is a promise from a specific individual, group or entity to pay "money" to the noteholder generally within a certain timeframe.
When banks first issued banknotes, they were indeed a promise to pay to the holder in gold or other precious metal (what was then considered "money") in an amount equal to the face value if presented to the bank.
When governments over the issuance of banknotes, the promise remained -- until the gold standard was abolished and the paper notes themselves became "money" rather than just promises for money.
What else can I help you with?
What is Currency notes?
A currency note is a banknote -- a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand.
Which cheque works just like a currency note?
Currency notes are promissory notes payable to the bearer on demand.section 31 of RBI ACT provides that no one other than RBI or Central Govt. Can issue a promissory note or bill of exchange payable to bearer on demand...hence no cheque works just as a currency note.
What Is promissory?
A promissory note is defined as an instrument in writing (not being a bank note or a currency note), containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument.
Wording for promissory note?
wording for promissory note with collateral
What is the definition of demand promissory note?
A promissory note is defined as an instrument in writing (not being a bank note or a currency note), containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument.
Is a promissory note valid with no consideration?
No....a promissory note is not valid without a consideration.
How can you use the word promissory in a sentence?
She signed a promissory note as a commitment to repay the loan on time.
How do you issue a promissory note?
A promissory note is a fancy legal name for a legally phrased I.O.U.
Amount of promissory note is called?
The amount written on the face of a promissory note is called face value or principal. The date on which the promissory note is written is called the issue date.
If you have a promissory note based on a business loan and you file bankruptcy on that business loan is the promissory note still valid?
Even though you file bankruptcy, you still have to honor the promissory note. If you are ordered to make installment payments then you will have to pay the promissory note in installments.
Is the amount of promissory note is called maturity value?
No, the amount of the promissory note is the face vale not maturity value. Maturity value is the value of the money on the promissory note after a period of time.
Difference between bill of exchange and promissory note?
difference between bill of exchange and promissory note?
