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It is said that a document is In sight when it can be claimed at any time. In other words, we are talking especially about deposits or credits that do not have a specific due date.
Description
When a lender lends money to a borrower, he can issue an enforceable promissory note. This is also called sight pay. The lender gives money to the borrower without a specific due date and asks the borrower to repay the same when he asks for it. In general, little or no notice is given to the borrower when a debt payable on demand expires.
Components
Usually, when a lender issues a promissory note of this type, it is for a fixed amount of money and is documented in writing. The promissory note also indicates the names of both parties, as well as the interest rate charged by the lender.
Benefits
A promissory note payable offers benefits to both the lender and the borrower. The borrower receives money now in the form of an open loan. He cannot be forced to pay the loan for a very long time. Interest accrues on the loan for the entire period in which the borrower keeps the money, so the longer the borrower keeps the loan, the more he will pay as interest. This type of promissory note offers a benefit also for the lender. When he determines that he needs to recover this money, the borrower must pay. The lender receives the money when necessary and is not obliged to give a long period of notice.
Details
Sometimes sight notes must be guaranteed. This means that the borrower must have a third party who agrees to repay the loan if he fails to comply. This person is called a guarantor. The same is obliged to sign the promissory note to agree to pay the amount when it is required if the borrower does not do so.