Overview

The Promissory Note is an instrument issued by a bank that promises to unconditionally pay a specific amount to the beneficiary or bearer on sight.

Benefits

Payable on sight; high level assurance of payment.

Promissory notes may be used for fund transfer. Promissory notes bearing the word "cash" may be used for cash withdrawal. Promissory notes may be transferred by endorsement, unless they bear the word "cash".

Procedures

1. The customer fills out the Settlement Application Form and affixes specimen seal at the designated area; if payment requires password entry, payment password should be prepared and provided at the designated area.

2. The bank reviews the completed Settlement Application Form, and issues the promissory note based on the application.

3. The customer delivers the promissory note to the beneficiary; the beneficiary then presents the promissory note to the paying bank for payment.