Promissory notes contain a promise by the president of India in a  case of central Government and by the Governor of the state in case of state  government securities to pay the specified sum of money to the holder of  the note or the last endorsee whose name appears on the reverse, on a  specified date or after certain notice, according to the terms of issue, A  promissory note is a negotiable one. The title to the promissory note passes  by the endorsement and delivery.