Re: Promissory Note Arizona

A promissory note can be either negotiable or non-negotiable. The default is negotiability, but it can be made non-negotiable either by its title or by the payment terms. The distinction is important because the Uniform Commercial Code primarily (or only?) addresses negotiable instruments. If a promissory note is not negotiable, you have to look to other law, perhaps the common law of the state where it was issued, not the more uniform UCCs of the various states.

Second, it is not necessary that a promissory note state a specific dollar amount. It is sufficient that the amount due can be determined from the language of the note. For example, I have seen promissory notes requiring payment of principal of $X plus interest at 2.5% over the then-prevailing prime rate as published in The Wall Street Journal. I don't think the holders of such notes would have any trouble enforcing them anywhere in the U.S.

On the other hand, a document making no specific promise whatsoever to pay money to a particular person, or the bearer, in a determinable amount and at a determinable time (including "on demand"), is probably not a promissory note at all, even if labeled as such.

Re: Promissory Note Arizona

No, you need specific terms including the amount.

Re: Promissory Note Arizona

The same answer given by the Arizona attorney also applies in California. A promissory note is a negotiable paper. It must contain the specific amount and other specific terms in order to retain its negotiability under the Uniform Commercial Code which mostly applies to both states.

Re: Promissory Note Arizona

I am not familiar with Arizona law; but, if this Promissory Note concerns a loan between private parties (I can't see a financial institution leaving out the dollar term :), does Arizona require such loan agreements to be in writing, in one document? Even with the Promissory Note defective as a negotiable instrument because of the missing terms, depending on Arizona's laws, it together with other evidence (email, witness, etc.) might still establish an enforceable debt. You need to ask an Arizona attorney.

Re: Promissory Note Arizona

I am not familiar with Arizona law; but, if this Promissory Note concerns a loan between private parties (I can't see a financial institution leaving out the dollar term :), does Arizona require such loan agreements to be in writing, in one document? Even with the Promissory Note defective as a negotiable instrument because of the missing terms, depending on Arizona's laws, it together with other evidence (email, witness, etc.) might still establish an enforceable debt. You need to ask an Arizona attorney.

Re: Promissory Note Arizona

I am not familiar with Arizona law; but, if this Promissory Note concerns a loan between private parties (I can't see a financial institution leaving out the dollar term :), does Arizona require such loan agreements to be in writing, in one document? Even with the Promissory Note defective as a negotiable instrument because of the missing terms, depending on Arizona's laws, it together with other evidence (email, witness, etc.) might still establish an enforceable debt. You need to ask an Arizona attorney.

Re: Promissory Note Arizona

this would be one of the more vague questions we have seen. if you want help, try giving some facts, or just speak with an attorney. i have no idea what you mean by "talk in theory," although probably the note is on a par with the question. show it to an attorney.

good luck,