Promissory Notes

A promissory note is a written statement that proves that one individual or entity owes money to another individual or entity. They are often issued in the context of loans and other financing. To be enforceable, it must contain certain requirements, also known as material terms.
● The parties: names and addresses of the parties to the agreement
● The promise: a statement of what exactly is being agreed upon (in this a repayment of money). Any terms or conditions on repayment must be clearly stated, and there should be a definitive date of repayment
● The amount payable: the exact amount that must be repaid. In New York state these debts may be repaid with money or bank notes.
● Signatures: the signatures of all parties to the agreement must be included, with witness signatures and document notarization being optional
The Financial Industry Regulatory Authority (FINRA) often arbitrates promissory note disputes between brokerage firms and brokers. In the securities industry, brokerages frequently offer account executives up front bonuses or forgivable loans to persuade them to join the firm and also make sure that the broker won’t get a windfall if they leave soon after arriving. The employment agreement usually stipulates that if the broker is fired within a specified period or leaves the firm for any reason, the balance due on the loan immediately becomes payable.