When a promissory note is issued in the United States and it meets the necessary conditions, it is considered a negotiable instrument. These types of notes are extensively used combined with mortgages in real estate transaction financing.
Commercial papers like promissory notes are also issued to businesses in need of additional capital. The Uniform Commercial Code of the United States defines promissory notes and provides guidelines for notes that are not considered negotiable instruments. Writing a disclaimer in a promissory note makes it a non-negotiable instrument, but it remains its status as a contract.