The promissory note

The promissory note . It is a written promise of payment. It is a legal document between merchants and a bank or financing company.


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  • 1 Definition
  • 2 Persons involved in the promissory note
  • 3 Legal part
  • 4 Location in the balance sheet of the promissory note
  • 5 Source


It is a security or financial instrument very similar to the bill of exchange and is used mainly to obtain financial resources. Written document by which a person agrees to pay another person or at his order a certain amount of money on a previously agreed date. The notes may be bearer or endorsable, that is, they can be transmitted to a third party.

The notes may be issued by private individuals, companies or the State; Although this credit instrument is usually used between bankers and financing companies, in relations with their clients when they need cash for operations, generally in the short or medium term.

People involved in the promissory note

  • Drawer: is the one who agrees to pay the sum of money, at sight or at a fixed or determinable future date.
  • The beneficiary or holder: is the one to whose order the payment of the sum of money stipulated in the promissory note must be made.
  • The guarantor or guarantor: the person who guarantees the payment of the promissory note.

Legal part

Below are some articles of the Venezuelan Commercial Code, which refer to the promissory note:

  • 486: “The promissory notes or vouchers between merchants or by acts of commerce on the part of the obligor must contain: the date, the quantity in number and letters, the time of their payment, the person to whom or to whose order it must be paid, the expression whether they are by value received and in which species or by account value “.
  • 487: “The promissory notes are applicable to the order, referred to in the previous article, the provisions regarding the bill of exchange on: the terms in which they expire; the endorsement; the terms for the presentation, collection or protest ; the guarantee; the payment; the payment for intervention; the protest; the prescription. “

As can be seen, Article 487 of the CC clearly specifies that the promissory note in some of its aspects is a document very similar to the bill of exchange.

  • 488: “The bearer of a promissory note protested for non-payment has the right to collect from those responsible: the value of the obligation; the interest from the date of the protest; the expenses of the protest; their interest from the lawsuit the legal expenses that would have been disbursed. “

A promissory note is a document payable to the drawer and a document receivable to the holder, in due course.

Location in the balance sheet of the promissory note

If the drawee is the company, it must be recorded in the liability, specifically in the current liability, with the account promissory note payable. Now, if the beneficiary or policyholder is the company, it must be placed in the asset, specifically in current assets, with the account promissory note receivable.


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