Bank Note Law and Legal Definition

Bank notes are promissory notes issued by a bank payable to a bearer on demand. A bank note is issued for money circulation. Although a bank note resembles a promissory note, it is not mere security for money. In ordinary course and in business transactions, bank notes are issued for payment of money. A bank note is transferred through delivery. The holder of a bank note is entitled to immediate payment. Fraud committed by a former holder in obtaining a bank note will not affect a present holder.