Question

if the maker of the note does not pay at maturity, the note has expired and is no longer in force

Answer 1

If maker of note does not pay at maturity, the note has expired and is no longer in force is a partially correct statement. Notes are promise to pay specific amount at a given point of time. But whether they are legally enforcable depends on the fact whether they are secured or unsecured. If notes are unsecured then above statement is correct. But if they are secured then above statement is incorrect. Security is basis of deciding its enforcability.

If note is secured then they can be legally enforced but then also the question is upto what extent. This can be answered on basis of type i.e., whether recourse or non recouse. If notes are recourse then maker can be held personally liable beyond its business assets. But if note is non recourse then maker can be held liable only upto business assets. So, at maturity these all are factors which help in deciding whether note can be enforced or not. Alternatively, there is one more possibility that maker of note once again issue fresh note seeking time extension.