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A loan note is a promissory agreement describing the terms of a loan and committing the person or institution borrowing the money to live up to those terms.
For example, a mortgage loan note states the principal balance, the interest rate, the discount points, a payment schedule and due date, and any potential penalties for violating the repayment terms.
When the required repayment has been made, the agreement between the parties ends.Yahoo Finance - Cite This Source - This Definition
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