Buying and Selling Promissory Notes
Issue No. 2430- If a person exchanges “the real promissory note” for an amount less than that, for example, a $100.00 promissory note which is for a period of three months, he exchanges it for $90.00 cash, in other words, if a creditor sells a $100.00 note, which he has to realize from the debtor, for $90.00 in cash, there is no harm in this sort of transaction of promissory note and it is termed as ‘discount of the promissory note’. However, transaction on the friendly promissory note is not free of problem (harm), because no real debt is involved in it, and none of the ways suggested to solve this problem are free of problems.
