A Promissory Note (commonly referred to as Note) is used to show an obligation by one party to repay another party for a certain amount borrowed. The Note is used to show the terms of the loan repayment and the rights of the parties under the Note. Information commonly found in a Note include the amount of the loan, the interest rate of the loan, a payment schedule, how the Note will be secured and so on. This document is commonly seen in the purchase of real property.
A Deed of Trust should be used when loaning money to another person or business. It allows a lender to hold an interest in certain property the borrower owns as security until the loan is repaid. This document must be recorded with the county land records.