A promissory note that calls for principal to be payable on demand. In recent years, courts have significantly restricted the circumstances under which a bank could make and enforce a demand for repayment under a demand note. American Banker Glossary
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demand note UK US noun [C] FINANCE
► (also demand draft) a document promising to pay back a loan when the lender asks for it: »
The employee borrows directly from a bank on a demand note basis and pays an annual interest rate equal to the prime rate.
► a written request for a debt to be paid: »
The City Council has now set its community charge, and the basic amount payable is shown on the enclosed demand note.
Financial and business terms. 2012.