Laurel, MD asked in Contracts, Civil Litigation and Collections for Maryland

Q: Is a promissory note considered under seal? What's the difference in Maryland between private contract vs. promissory?

I have 9 student loans with Discover that are in default and need a legal definition of what my agreements actually are

1 Lawyer Answer
Mark Oakley
Mark Oakley
  • Rockville, MD
  • Licensed in Maryland

A: It’s only under seal if the word “seal” appears on the signature line. All that does is extend the statuteof limitations for suing in eventod a default from 3 years to 12 years. A promissory note is a contract. It’s a type of contract. It memorializes a monetary debt owed by the promissor to the lender. It is only signed by the person who owes the debt. Generally, it will include an acceleration clause that makes the entire balance due upon the default if any installment payment due under the note, plus the right of the holder of the note (usually the lender, but anyone to whom the lender sold the right to receive the debt due under the note to), to enter a default judgment against the debtor/promissor in any court.

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