Definition - What does Note mean?

A note is a formal document that states that one party owes another party a debt. Notes can be used from individual debts all the way up to debts owed by national governments. Notes can be small sums and large sums. Notes often include details such as due dates and the interest rate that accompanies the debt.

Justipedia explains Note

A note is basically an IOU. For example, the United States government offers notes called treasury notes for sale. People can buy these notes, which is essentially the equivalent of giving the United States Treasury a loan. Then, the Treasury owes the note holder money plus interest. Similarly, dollar bills are also known as "Federal Reserve Notes." Dollar bills used to be redeemable for gold, prior to the ending of the gold standard by President Nixon. So dollars used to essentially be IOUs from the Federal Reserve that were redeemable for gold.

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