A promissory note is defined as a negotiable instrument, issued by a person making a written unconditional promise to pay a specific sum of money on demand, a fixed date, or a future time with the terms and conditions specified on the note.
Promissory notes issued attached to property are secured by a mortgage or a deed of trust which are instruments of public records. The promissory notes are often unrecorded but the deed of trust and the mortgage are. Anything that is used for security, like a home, a car or other things of value goes to the lender in case of default of payment.