Ans: Since promissory notes are legally binding, the payer must pay what he promised to the payee. If he fails to do so, the promissory note will be considered dishonoured. The payee reserves the right to confiscate the security pledged as collateral if it's a secured promissory note. However, if a dishonoured promissory note is unsecured, the payee can file a lawsuit against the payer.