[Editorial note:  A promissory note is a specialized type of contractual obligation, governed in part by some special rules in Article 3 of the Uniform Commercial Code but otherwise subject to the law of contract.  These special rules are generally considered in an upper division course entitled "Payment Systems" or "Commercial Transactions" in which you also study about checks, electronic payment systems, and letters of credit.  You needn't worry now about these special rules, none of which are pertinent to this case, nor need you remember the terms of the promissory note that Mrs. Phillips signed.  However, it will be useful for you to read this promissory note simply to see what one looks like.]

     n1  The promissory note reads as follows: "$34,000.00 Stateline California, April 20, 1965. No. OT-516
"On Demand or if no demand then on May 20, 1965, for value received, the undersigned promise(s) to pay to the order of the Tahoe National Bank, Stateline Office, the sum of Thirty Four Thousand and 00/100 Dollars with interest at the rate of 7% percent per annum from date until paid, interest payable at maturity and if not punctually paid, it shall become a part of the principal, and thereafter bear the same rate of interest as the principal debt; and should the interest not be paid when due, then the whole sum of principal and interest shall become immediately due and payable and may be charged to the account in said Bank of either the principal maker, or sureties on said note, at the option of the holder thereof. Should an attorney be employed to collect, or should suit be commenced to enforce the payment of this Note the undersigned agree(s) to pay a reasonable sum additional as attorney's fees; also costs of such suit. Principal and interest payable in lawful money of the United States. Should this note be signed by more than one person, and/or firm, and/or corporation, all covenants and obligations herein contained shall be considered for all purposes as joint and several covenants and obligations of each signer hereof. Renewed Nov 18 1965 Address P.O. Box 2612, Tahoe Valley, Calif. Beulah F. Phillips Address Tahoe National Bank, Stateline, Calif. . . . Unsecured Single Payment Note Assignment on Record."