Promissory Note

A promissory note is a written agreement in which a borrower promises to repay a specified amount to the lender under defined terms (interest rate, payment schedule, maturity date). In whole life banking, promissory notes are a common deployment vehicle — practitioners lend their policy loan proceeds to others and receive interest payments.

As the note holder (lender), you receive:

• Regular principal and interest payments from the borrower
• A defined return rate (the note's interest rate)
• A maturity date when the remaining balance is due

Promissory notes are tracked in Policy Stack as a distinct deployment type with structured amortization. You record the note terms (amount, rate, payment schedule, maturity date), and Policy Stack calculates the amortization schedule and tracks actual payments received against the schedule.

Related terms: Capital Deployment, Amortization, Net Return, Cash Flow, Accrual Balloon Note, ARM Note