Principle of note definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Principle of note can be defined as: Amount that the signer of a note agrees to pay back when it matures, not including interest. When a note is paid back the payment generally include a principle portion and an interest portion. The principle portion is like repayment of the original amount. The interest is like interest for the use of the purchasing power of the money.
