Boat Promissory Note
BoatWiki - Definitions
Definition
A promissory note can be defined in boating terms as a legal instrument where the payer promises in writing to pay a determined amount of money to the payee or holder. This is typically associated with a financial institution or seller financing of a particular boat.
Meaning
Promissory notes can represent certain terms such as a due date, periodic payment conditions, or a lump sum payment. It also determines an interest rate which is usually stated an a per annum or annual percentage figure. Additional language may dictate where payment is to be made, a description of the subject boat as collateral, and what happens in the case of a default.
Context
In the boating industry, a promissory note is usually associated with a security agreement which defines the terms of how a specified boat is to become secured or perfected as collateral. These are usually recorded in conjunction with a state title, UCC filing, or preferred vessel mortgage.
Conclusion
Promissory notes come in various formats including that provided in BoatWiki. These can affect your legal standings and should accordingly be reviewed by an attorney or professional regarding any such concerns. Please help your fellow boaters by wiki-sharing any comments or experiences with boat promissory notes.
Credits and References
7/5/2022 - Page initiated by Team BoatWiki.
