A promissory note formalizes a loan agreement. In the mortgage world ... Secured promissory notes are backed by collateral, like a car or house. The lender can seize this collateral if the ...

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or PLUS loans. A promissory note is your "I owe you" contract-think of it as your handshake with the lender, locking in your commitment to pay back the principal, plus interest, on a set schedule.