Excerped from Chapter 15 of Commercial Real Estate: Law Practice Manual with Forms, Second Edition, by James P. McAndrews.
There is no basic difference between a mortgage note, that is, a note secured by a mortgage, and a deed of trust note, that is, a note secured by a deed of trust. Both notes are promissory notes and, therefore, must be signed by the maker (borrower) and must contain an unconditional promise to pay a sum certain, at a specified time or on demand, to a designated payee (lender). The note may be negotiable or non-negotiable. For ease of discussion, both notes shall be referred to in this chapter as “note.”