Definition: The maturity date of a note is the time and date when the interest and principal is due in full and must be repaid. A note or promissory note is a written promise to a pay specific amount of money at a future date. The future date is called the maturity date. Saying a note has matured is another way of saying that it is due.
What Does Maturity Date of a Note Mean?
Notes can be issued with any time period, but the most common note periods are less than one year. In other words, the contract and loan will mature in less than one year from when it was issued. Notes that mature in less than one year don’t typically state the maturity date on their face, but some do. Instead, the issuance date is written on the note contract along with the note period.
Also, notes issued for less than one year can be have maturity dates expressed in terms of days or months. This can change some terms and language on the contract itself.
For example, a nine-month note issued on January 14, 2016, would include the issuance date on the face of the note. It would also state the nine-month time period. When notes are described in months, the note matures on the same day of the month as it was issued. In other words, the January 14, 2016 nine-month note would mature on September 14, 2016.
Other notes are stated in days. For example a 90-day note that was issued on January 14, 2016 would mature on April 14, 2016.