What Is a Promissory Note?

Statutory definition

Under section 83 of Cap. 262, a promissory note is an unconditional promise in writing, signed by its maker, to pay a sum certain in money to, or to the order of, a specified person or to bearer, on demand or at a fixed or determinable future time. The legal elements, not the document’s label, are decisive.

Under section 84, a note is incomplete until delivered to the payee or bearer. A note secured by a mortgage of immovable property, and a document expressly stating that it is not a promissory note within Cap. 262, fall outside this special regime.

Required and prudent entries

• The maker’s unconditional promise to pay
• A sum certain and currency
• The payee, their order, or bearer wording
• Payment on demand or at a fixed or determinable maturity
• The maker’s signature
• In practice, the date, place of payment and clear identity of the parties
• Where interest is intended, the rate and any special commencement date

When and at what rate does interest run?

Section 9(3) provides that where the note expressly bears interest and no different commencement date is stated, interest runs from the date of the note, or, if undated, from issue. This rule fixes commencement; it does not permit an unlimited rate.

Contractual interest must not exceed the maximum fixed by the Central Bank under the Contracts Law. The official table accessed on 20 September 2026 showed the latest rates as 25% per annum for Turkish lira, 9% for US dollars and euros, and 10% for sterling. A lower written rate applies; where no interest is agreed, the note alone does not create contractual interest.

Contractual and judgment interest differ

Interest in the note is contractual. Interest on a judgment is separately determined under the Courts Law and the Central Bank decision in force for the relevant period. From 28 August 2026 the Turkish-lira judgment rate was 32.50% per annum; for foreign currency the official table showed, from 2 March 2026, 1.50% for US dollars, 0.75% for euros and 1.50% for sterling. Currency, date, maturity, relief claimed and judgment date must be separated in the calculation.

Issues in a dispute

Denial or lack of authority for a signature, delivery, later completion of an incomplete instrument, presentment, endorsements, stamp duties, limitation and interest calculations all require separate examination. Every payment should be evidenced by a receipt and, where possible, noted on the instrument.