Who is referred to as the maker in a promissory note?

The term "maker" in the context of a promissory note refers specifically to the individual or entity that makes a promise to pay. This is the party that is responsible for repaying the loan amount to the lender, as outlined in the promissory note. This person or business acknowledges their obligation and commits to fulfilling the terms of the agreement, which is foundational in any loan transaction.

In a promissory note, the maker is typically the one who initiates the loan process, and their legal obligation is clearly defined by the agreement. They must meet the payment schedule and conditions laid out in the note, making it imperative for financial institutions and lenders to accurately identify this party.

The other roles mentioned in the choices may relate to the promissory note but do not define the maker. For instance, the individual receiving the loan plays a critical role but is typically characterized as the borrower rather than the maker. The individual or business that owes money could align with the maker's responsibilities but is a broader term that encompasses various debtors, not specifically associated with the act of making the promise. Lastly, an individual guarantor may support the loan agreement by providing additional security or assurance for repayment but does not fulfill the primary obligation of the maker to