Henry purchased an automobile from Iso Motors, and as a part of the payment, gave Iso Motors a promissory note in the amount of $4,000. If the promissory note is properly drawn and signed by Henry, Iso Motors may negotiate it to Friendly Finance Company.

Promissory Note

A financial tool comprising a formal pledge by one entity to compensate another entity with a certain amount of money, which can be requested at any time or on a predefined future date.

Negotiate

To discuss something in an attempt to reach agreement, especially in business or political contexts.

Properly Drawn

A term indicating that a document, especially a legal document, has been prepared correctly and in accordance with all necessary formalities.