Final answer:
A promissory note requires payments to be made as agreed upon by the involved parties. This can entail various payment schedules defined in the note. While escrow is a common term in real estate transactions, it isn't specifically related to the repayment structure of promissory notes.
Step-by-step explanation:
In regards to a promissory note, payments are to be made as initially agreed upon by the parties involved. This mutual agreement specifies the repayment schedule, whether it's in regular installments, lump-sum payments, or even on a more flexible basis. The terms, including the payment schedule, interest rate, and consequences for late payment, are usually outlined in the promissory note itself.
The concept of an escrow is related to financial transactions in real estate. However, it is not directly linked to the repayment of a promissory note. Escrow refers to a third party holding funds or assets until certain conditions are met, such as the completion of a property transfer, at which point the escrow agent disburses funds for expenses like home insurance and property taxes as part of the borrower's normal monthly payment.
In addition, lending institutions often take measures to secure loans, such as requiring a cosigner or demanding collateral like property or equipment. These elements play a role in the broader financial capital market but are not the direct means of payment for a promissory note.