The person who signs a note receivable and promises to pay the principal and interest is the:
A) Maker.
B) Payee.
C) Holder.
D) Receiver.
E) Owner.

Question

Quizplus · Accepted Answer

The maker of a note receivable is the person who signs the note and promises to pay the principal and interest. The payee is the person to whom the payment is to be made, the holder is the person who possesses the note, the receiver is not a relevant term in this context, and ownership may or may not be relevant depending on the circumstances.

The Person Who Signs a Note Receivable and Promises to Pay