Forfaiting Glossary

Glossary Items beginning with : P

Primary Obligor

Under the URF each person that has a primary obligation to make payment under the payment claim.

Progress Payment

Payments made in stages in the course of a supply contract.

Promissory Note

A promissory note is normally issued by a buyer, such as an importer for example, promising to pay the seller at a future date – effectively like an IOU. The right to receive payment under a promissory note may be transferred by endorsement unless endorsement or transfer is expressly prohibited.


A legal document showing that a Bill of Exchange/Promissory Note (debt instrument) was presented to the drawee/issuer for acceptance/payment and was refused.