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A Discount Promissory Note is commonly used in Singapore's commercial and financial sectors when parties need a formal, negotiable instrument for debt obligations where the payment amount is discounted from face value. This document type is particularly useful for short-term financing, trade finance, and commercial transactions. The note must comply with Singapore's Bills of Exchange Act and typically includes essential elements such as the principal amount, discount rate, payment terms, and any security arrangements. It serves as both a proof of debt and a negotiable instrument that can be transferred to third parties.
