Legal Definitions - reissuable note

A reissuable note is a type of promissory note that can be put back into circulation after it has been paid once. A promissory note is a written promise by one party to pay money to another party or to bearer. A note is a two-party negotiable instrument, unlike a draft which is a three-party instrument.

For example, if a company issues a reissuable note to borrow money from an investor, and the investor is repaid, the company can issue the same note to another investor to borrow money again. This makes it easier for the company to borrow money without having to create a new note each time.

Another example of a promissory note is a mortgage note, which is a note that evidences a loan for which real property has been offered as security. This means that if the borrower fails to repay the loan, the lender can take possession of the property.

Overall, a reissuable note is a useful tool for companies to borrow money repeatedly without having to create a new note each time. It is a type of promissory note that can be put back into circulation after it has been paid once.