Satisfaction and Release
(Promissory Note)

Summary

This template is a satisfaction and release of a promissory note issued by the lender to the debtor following payment in full by the debtor of those amounts due under the note. This template includes practical guidance and drafting notes. Promissory notes are written instruments under which one party (the maker) makes an unconditional promise to another party (the payee, or to their order, or to bearer) to pay such other party a specific sum of money, with or without interest, and generally on or before a particular date, and according to terms and conditions mutually agreed upon by the parties. They are generally entered into when lending money, selling goods, providing services, or during other transactions when one party is extending credit to another party that may be unable to provide the funding required at the time of the transaction. Promissory notes are governed by Uniform Commercial Code (UCC) § 3-101 et seq., which addresses negotiable instruments. A satisfaction and release is a document informing a debtor (in this case, the maker) that its debt to the lender (i.e., the payee) has been fully satisfied. This template provides written proof that the maker has fully paid off its debt to the lender. Such evidence may prove invaluable in the event of a future inquiry or dispute. This template is neutral in terms of jurisdiction and industry. For a promissory note template, see Term Promissory Note, and for more information on the topic, see Promissory Notes Resource Kit (Small to Mid-Sized Law).