Demand Note

When a loan with no fixed maturity, payment terms, or interest is made informally between family, friends, or business partners as a favor, they may sometimes sign an I.O.U., which is technically a "demand note."

"When I demand you pay it back, you shall. Or else." That is...the borrower should be prepared to repay the loan on demand whenever the lender calls for it.

It’s also called a demand note because if you borrow from your spouse’s family, you can be sure to hear demands from that spouse with reminders of the loan you took from your in-laws, and you won’t hear it stop until it's paid off.

Don't go there. Really.