What are the key components that need to be included in a Texas promissory note?

The correct choice highlights the fundamental elements that compose a Texas promissory note, which include the principal amount, the interest rate, and the payment schedule.

The principal amount refers to the original sum of money that is borrowed and is a crucial detail, as it represents the basis of the loan. The interest rate is vital because it determines the cost of borrowing the principal over time; it directly affects how much the borrower will ultimately pay back. Lastly, the payment schedule outlines when payments are due, which is essential for both parties to understand their obligations and to ensure that the loan is repaid in an agreed-upon manner.

Including these components ensures that the note provides clear terms regarding the financial agreement, which is critical for legal enforceability and clarity between the lender and borrower.

While other options contain components that might be relevant for different financial agreements or additional terms, they do not encompass the foundational elements required for a basic promissory note as stipulated under Texas law.