A promissory note is a written and signed agreement between a borrower and a lender that describes a loan made by the lender to the borrower. It details the repayment terms and interest. It may also have a spot where a cosigner must sign. In those cases, the cosigner agrees to repay the loan
All banks and financial institutions as well as lenders of any kind will have a promissory note drawn up each time a loan or other credit is facilitated to ensure that both parties agree to the same terms and expect the same things. If one party does not keep their terms of the promissory note, the other is able to take them to court and recoup any expectations resulting from the promissory note.