A promissory note is a written document that outlines an agreement between two parties in which one party promises to pay a certain sum of money or provide another form of compensation to the other party. The note typically includes the amount of money to be paid, the terms of repayment, and any interest rate or late fees associated with the loan. It also serves as evidence of the loan and legally binds both parties to its terms. #### Banking Considerations A promissory note is a promise to pay. However, to be [[Secured | secured,]] additional documentation such as a [[Deed of Trust | deed of trust,]] [[Collateral Assignment | collateral assignments]], [[UCC]] filings, or other documentation are required to be filed. The process of filing the additional paperwork is called [[Perfection | perfection]].