Bank notes are sometimes referred to as promissory notes made by the bank which are payable on the demand of the bearer. In accounting, they are called just notes and exchanges of notes are regulated internationally by the Convention on uniform law for promissory notes and bills of exchange.
Included in the promissory note are the principal amount, the rate of interest, the names of the parties involved, the date of the note, and the dates and terms of repayment. There are times when there are provisions about the payee’s rights to foreclose assets in case of a default.