What Is A Promissory Note? - A promissory note is a signed document whereby a written promise to repay a loan or debt of stated amount to a specified person under the specific terms and conditions. Usually a promissory note identifies the related parties, the total amount of obligation, terms and conditions of repayment, and sometimes the interest rate that will apply. One thing to be careful when you draft a promissory note is to consider the state of usury laws, which defines the maximum interest rate you are allowed to charge. If you violate this usury laws, there would be a huge civil or criminal consequences out of that.