The terms cosigner, co-maker, joint-maker, surety, and guarantor have different legal meanings. Nevertheless, if you agree to pay for another person's debt if he or she defaults (or does not pay), regardless of designation, you will be responsible for the debt.Sep 16, 2015
Who is the endorser of a promissory note?
promissory note is the “endorser”, the person who holds a promissory note is the “bearer”, and the person who is meant to receive the payment (if not the bearer) the “payee”. payable on demand (a “demand note”) or at a future date that is either fixed or determinable (a “term note”). 176.May 9, 2013
What is the role of co-maker in a loan?
Similarly, the terms co-maker or joint-maker involve two or more individuals signing documents that state that each of them will repay loans and is liable to ensure that the full amount of the repayment is paid.Sep 16, 2015
How do you endorse a promissory note?
Endorsements of Promissory Notes When a loan changes hands, the promissory note is endorsed (signed over) to the new owner of the loan. In some cases, the note is endorsed in blank which makes it a bearer instrument under Article 3 of the Uniform Commercial Code.
What is a co-maker in a promissory note?
A person who signs a promissory note along with the primary borrower. A co-maker's signature guarantees that the loan will be repaid, because the borrower and the co-maker are equally responsible for the repayment. Sometimes called a co-signer.
Who is the maker of a promissory note?
1) The maker: This is basically the person who makes or executes a promissory note and pays the amount therein. 2) The payee: The person to whom a note is payable is the payee. 3) The holder: A holder is basically the person who holds the notes. He may be either the payee or some other person.
Who can be a co-Maker?
A co-maker can be a relative, friend or family member, provided that they assume responsibility that the payments for the debt will be made and assume potential liability if the primary borrower defaults on the loan.
Who is the endorser on a promissory note?
promissory note is the “endorser”, the person who holds a promissory note is the “bearer”, and the person who is meant to receive the payment (if not the bearer) the “payee”. payable on demand (a “demand note”) or at a future date that is either fixed or determinable (a “term note”). 176.May 9, 2013
What is a maker on a note?
Definition: A maker of a note is the party or person who signs the notes, borrows the money, and promises to pay it back at a certain time. They are called the maker of the note because they physically made the contract.