The Promissory Note is an unconditional promise to pay an amount of money at a specified rate of interest on or before a specified date to a specified person or entity at a specified location.  The note may be sold and/or assigned for any amount to any person at any time.  The note refers to a security instrument (deed of trust / mortgage) made at the same time as the note, as security for the repayment of the note.

The commercial loan agreement is a companion document to the promissory note.  Its purpose is to define how draws are requested and paid, to define our right to inspect, demand payment, and foreclose, and to define its relationship to the promissory note and the security instrument (deed of trust / mortgage).  The document also defines the borrower's duties and responsibilities.

The Bond serves as an additional security for the repayment of the loan and an agreement of the borrower to indemnify the lender.  It binds all those who sign the note and loan, along with their heirs, executors and administrators to comply with all requirements.  The bond is also referred to as a completion bond.  It serves as a guarantee by the borrowers to complete the construction project.