A note is an instrument that gives the creditor a security interest in the debtor's property that is pledged as collateral.

Question

Quizplus · Accepted Answer

A note is a financial instrument that represents a promise to pay a specified amount of money, but it does not inherently give the creditor a security interest in the debtor's property. A security interest is typically established through a separate agreement, such as a security agreement or mortgage.

A Note Is an Instrument That Gives the Creditor a Security