Legal Question in Securities Law in New York

Re: Negotiable instruments

Every person competent to form contract can make Promissory Note. It is evidence of credit one has advanced. It is negotiable instrument which can be used for the recovery of advance in court of law upon its dishonour. It is conclusive proof of advance. It needs no other evidence.

Re: Negotiable instruments

No.

Re: Negotiable instruments

In general, a promissory note is an IOU. If you lend someone money, you would have that person sign a promissory note in your favor for the amount loaned (plus interest, sometimes). The promissory note would be evidence of debt. The laws relating to promissory notes include the Uniform Commercial Code, as well as principles of contract law.

If you are using a series of promissory notes to raise capital for a business, you may need to comply with various state blue sky laws (and other related laws) because the promissory notes in that instance could be deemed securities. It is imperative that you obtain legal advice if you are raising capital.

In general, there are no restrictions on who may issue an enforceable promissory note, exceptions including those not competent to enter into contracts. You should speak to a lawyer about the particular facts of your situation in order to get a more precise answer.