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Simple English definitions for legal terms
serial note
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A quick definition of serial note:
A serial note is a written promise to pay money to someone else. It's like a loan that you have to pay back in installments, which means you pay a little bit at a time instead of all at once. It's important to make sure you can afford to pay back the money before you sign a serial note.A more thorough explanation:
A serial note is a type of installment note, which is a written promise by one party to pay money to another party or to bearer in regular intervals. The periodic payments usually cover only interest, while the final payment represents the entire principal. Serial notes are commonly used for loans, mortgages, and other financial transactions.
For example, a person may take out a serial note to purchase a car. They would make regular payments to the lender, with the final payment covering the full cost of the car. Another example is a mortgage, where the borrower makes regular payments to the lender, with the final payment covering the entire loan amount.
Serial notes are different from other types of notes, such as demand notes, which are payable whenever the creditor wants to be paid, or time notes, which are payable only at a specified time and not on demand.