Is a promissory note cash?

[Shoonra]

Even when a promissory note is accepted by the (potential) payee, it is not a payment nor does its acceptance end the transaction. The promissory note is merely a promise to pay at a future date, and until it is paid off a debt exists.

[palani]

Not the contents but the box. In the modern sense a promissory note does not refer to the box.

cash 1593, from M.Fr. caisse "money box," from Prov. caissa, It. cassa, from L. capsa "box" (see case), originally the money box, but the secondary sense of the money in it became sole meaning 18c. Verb meaning "to convert to cash" (as a check, etc.) is first attested 1811. Like most financial terms in Eng., ultimately from It. (cf. bankrupt, etc.). Not related to (but influencing the form of) the colonial British cash "Indian monetary system, Chinese coin, etc.," which is from Tamil kasu, Skt. karsha, Sinhalese kasi.

1649, from M.L. promissorius (1274), from L. promissor "a promiser," from promissus, pp. of promittere (see promise). Promissory note first recorded 1710.

note (v.) c.1225, "observe, mark carefully," from O.Fr. noter, from L. notare, from nota "letter, note," originally "a mark, sign," possibly an alteration of Old L. *gnata, infl. by gnoscere "to recognize." Meaning "to set in writing" is from c.1400.

notary 1303, "clerk, secretary," from O.Fr. notarie, from L. notarius "shorthand writer, clerk, secretary," from notare, "to note," from nota "shorthand character, letter, note" (see note). Meaning "person authorized to attest contracts, etc." is from 1340; esp. in notary public (1494), which has the Fr. order of subject-adj.

insolvent 1591, "unable to pay one's debts," from in- "not" + L. solventem "paying" (see solvent). Originally of one who was not a trader; only traders could become bankrupt.

bankrupt 1533, from It. banca rotta, from banca "moneylender's shop," lit. "bench" (see bank (1)) + rotta "broken, defeated, interrupted" from (and remodeled on) L. rupta, fem. pp. of rumpere "to break" (see rupture). The verb is first recorded 1552.

[Shoonra]

Instead of wasting your time looking up Latin and Norman French etymologies, check a lawbook on negotiable instruments.

A promissory note shares some qualities with a check .... except that a check usually is collectable immediately and a promissory note explicitly stalls for time.

[fulltitle]

Without Prejudice.
Shoonra I have over time somewhat randomly asked lawyers that I've come across about their knowledge of commercial law and seems even some of the most skilled ones dont know much or anything about it.

***

Promissory notes upon acceptance by a payee may take on a different characteristic than a non-delivered inchoate promissory note. Furthermore, upon their acceptance they may take an even different characteristics. The thing is that a promissory note can go through 'stages of development', from inchoate to delivery to acceptance..etc.

And let it be pointed out that 'acceptance' = promise to pay.

Key thing to remember is that bills of exchange were and are used to cancel out obligations. If there is a trade balance between country A and country B, bills of exchange between them can cancel one another out. The pertinence of a PN that has developed for the most part into a bill of exchange perhaps ought not be overlooked in that light.

Originally Posted by Shoonra

A promissory note shares some qualities with a check .... except that a check usually is collectable immediately and a promissory note explicitly stalls for time.

That is not quite true. A check is a promissory note issued by a first party and payable to the order of a second party but drawn on a third party. However, the modern 'check' at the time of issuance is a three party instrument. Whereas, a PN at the outside might be a two party instrument until acceptance and subsequent negotiation. A promissory note does not necessarily 'explicitly stall for time' since it can be payble on demand. The only promissory note that explicitly stalls for time is one that explicitly stalls for time. TO say that all promissory notes explicitly stall for time is errant and misleading.

A promissory note, issued, accepteed, payable to order and negotiated can be passed around in the same manner that cash can be.

Now whether a promissory note is stemming from acceptance of an offer or is part of an offer itself might also have some pertinence.

A promissory note, underwritten by a security of some sort held by a third party takes on the characteristics of a check in that such would be a three-party instrument at issuance.

[palani]

Originally Posted by Shoonra

check a lawbook on negotiable instruments.

OK!

Originally Posted by Bouvier

NEGOTIABLE PAPER, contracts. This term is applied to bills of exchange and promissory notes, which are assignable by indorsement or delivery.

2. The statute of 3 & 4 Anne (the principles of which have been generally adopted in this country, either formally, or in effect,) made promissory notes payable to a person, or to his order, or bearer, negotiable like inland bills, according to the custom of merchants.

3. This negotiable quality transfers the debt from the party to whom it was originally owing, to the holder, when the instrument is properly indorsed, so as to enable the latter to sue in his own name, both the maker of a promissory note, or the acceptor of a bill of exchange, and the other parties to such instruments, such as the drawer of a bill, and the indorser of a bill or note, unless the holder has been guilty of laches in giving the required notice of non-acceptance or non-payment. But in order to make paper negotiable, it is essential that it be payable in money only, at all events, and not out of a particular fund. 1 Cowen, 691; 6 Cowen, 108; 2 Whart. 233; 1 Bibb, 490, 503; 1 Ham. 272; 3 J. J. Marsh, 174, 542; 3 Halst. 262; 4 Blackf. 47; 6 J. J. Marsh, 170; 4 Mont. 124. See 1 W. C. C. R. 512; 1 Miles, 294; 6 Munf. 3; 10 S. & R. 94; 4 Watts, 400; 4 Whart. R. 252; 9 John. 120; 19 John. 144; 11 Verm. 268; 21 Pick. 140. Vide Promissory note. Vide 3 Kent. Com. Lecture 44; Com. Dig. Merchant, F 15, 16; 2 Hill, R. 59; 13 East, 509; 3 B. & C. 47; 7 Bing. 284; 5 T. R. 683; 7 Taunt. 265, 278; 3 Burr. 1516 6 Cowen, 151.

4. To render a bill or note negotiable, it must be payable to order, or to bearer. When it is payable " to A B only," it cannot be negotiated so as to give the indorsee a claim against any one but his indorser. Dougl. 615. An indorsement to A B, without adding " or order," is not restrictive to A B alone, he may, therefore, assign it to another; Str. 557; or he may indorse it in blank, when any attempt, afterwards, to restrain its negotiability will be unavailing. Esp. N. P. Cas. 180; 1 Bl. Rep. 295. Vide Blank Indorsement; Indorsment.

Originally Posted by Bouvier

MONEY. Gold, silver, and some other less precious metals, in the progress of civilization and commerce, have become the common standards of value; in order to avoid the delay and inconvenience of regulating their weight and quality whenever passed, the governments of the civilized world have caused them to be manufactured in certain portions, and marked with a Stamp which attests their value; this is called money.

money c.1290, "coinage, metal currency," from O.Fr. moneie, from L. moneta "mint, coinage," from Moneta, a title of the Roman goddess Juno, in or near whose temple money was coined; perhaps from monere "advise, warn" (see monitor), with the sense of "admonishing goddess," which is sensible, but the etymology is difficult.

Thanks for the suggestion. Hope this helps.

[Shoonra]

When I suggested you check a lawbook I didn't mean one from the 19th century or that was based on British law.

You insist on learning the hard way. And that's how you'll learn.

[fulltitle]

Originally Posted by Shoonra

When I suggested you check a lawbook I didn't mean one from the 19th century or that was based on British law.

You insist on learning the hard way. And that's how you'll learn.

Without Prejudice.
As if any of it has really changed. Maybe we gotta give Shoonra points here..seems he's suggesting that you read up on Roman law rather than "British law" and maybe for a good reason.

[Shoonra]

Yeah, actually the adoption of the UCC had a considerable effect on the matter of promissory notes.

As far as I can tell promissory notes were not mentioned in Justinian's Institutes, not that it matter to modern US law.

[fulltitle]

Without Prejudice.

Originally Posted by Shoonra

Yeah, actually the adoption of the UCC had a considerable effect on the matter of promissory notes.

The UCC is not universal--only applies to the States of the United States that adopted the UCC or some flavor of the UCC.

Originally Posted by Shoonra

As far as I can tell promissory notes were not mentioned in Justinian's Institutes, not that it matter to modern US law.

So if Palani isnt to look to British law or to Roman law then to what? Oh but I wonder what Justinian might've said about pledges.

[Shoonra]

I would have supposed the vast majority of promissory notes of interest to people on this forum are those entirely inside the US.