Final answer:
When using a promissory note as earnest money, the note must include the amount of money being promised, the terms of repayment, the names and contact information of the borrower and lender, and any collateral being pledged as security.
Step-by-step explanation:
When using a promissory note as earnest money, there are certain things that are mandatory. First, the promissory note must clearly state the amount of money being promised and the terms of repayment. Additionally, the note should include the names and contact information of both the borrower and the lender, as well as any collateral that is being pledged as security for the loan.
For example, let's say you are using a promissory note to provide earnest money for the purchase of a house. The note should clearly state the amount of money being promised, the interest rate (if any), and the date by which the money must be repaid. It should also include your name and contact information as the borrower, as well as the seller's name and contact information.
In summary, when using a promissory note as earnest money, you must include the amount of money being promised, the terms of repayment, the names and contact information of the borrower and lender, and any collateral that is being pledged as security.