Question 51

The borrower is required to sign a promissory note.

In a promissory note agreement, it is the borrower who is obligated to sign the document, confirming their promise to repay the loan under specified terms.

A) Both the borrower and the seller

This option is incorrect because the seller is not required to sign the promissory note. The note is a commitment from the borrower to repay the lender, and the seller's signature is not necessary for this agreement.

B) The borrower only

This option is correct as only the borrower is required to sign the promissory note. The borrower acknowledges their debt and agrees to the repayment terms solely through their signature.

C) The borrower, the seller, and the trustee

This option is incorrect because it implies that multiple parties must sign the promissory note. In reality, only the borrower is required to sign, while the seller and trustee may have roles in the transaction but do not need to sign the note.

D) The seller only

This option is incorrect because the seller is not the party that incurs the debt; therefore, they are not required to sign the promissory note. The borrower is the only party that must provide their signature to establish the loan agreement.

Conclusion

The borrower is the only party required to sign a promissory note, as this document serves to formalize their commitment to repay the loan. All other options incorrectly suggest that additional signatures are necessary, which is not the case in standard promissory note agreements. Thus, option B is the definitive answer.