Creating Investor Notes

Set up new investor notes with configured interest terms, maturity dates, payment frequencies, and special handling for certificates and IRA accounts.

Before You Begin

Gather the following before creating a new investor note. Missing any of these items will block the creation process.

✓Investor in CRM: The investor must already exist in the CRM module as an entity with the INVESTOR type. Navigate to CRM → Entities and create the entity first if needed. The entity_id links the note to the investor record.
✓Agreed Investment Terms: Principal amount, annual interest rate, term in months, payment frequency, issue date, first payment date, and maturity date.
✓Role Permissions: You must have ADMIN, TREASURY, or STAFF role. High-value notes may trigger the maker-checker approval workflow.
✓Note Type Decision: Determine whether this is a Fixed, Variable, or Demand note. Variable and Demand notes require additional configuration fields.
✓Payment Method: Confirm how interest payments will be delivered: CHECK, ACH, WIRE, REINVEST (add to principal), or COMPOUND.

Step-by-Step: Create a New Note

Navigate to Notes: Open the sidebar and click Notes. You will see the note list with filters for status, investor, and date range.
Click "+ New Note": This opens the NoteModal, a multi-section form with 10 collapsible sections covering all note configuration.
Fill in Basic Information (required):
- note_number -- Unique identifier (e.g., IN-2026-0015)
- entity_id -- Select the investor from CRM entities
- principal_amount -- Investment amount in dollars
- interest_rate -- Annual rate as a decimal (e.g., 4.50)
- term_months -- Note duration in months
- payment_frequency -- MONTHLY, QUARTERLY, SEMI_ANNUAL, or ANNUAL
- issue_date -- Date the note is issued
- first_payment_date -- When the first interest payment is due
- maturity_date -- Final maturity date
Set Day Count Convention: Choose the convention used for interest calculations. The default is ACT/365. See the Interest Accrual page for details on each convention.
Configure Interest Payment Method: Select how the investor will receive interest payments from the dropdown: CHECK, ACH, WIRE, REINVEST, or COMPOUND.
Set Maturity Action: Choose what happens when the note matures: NOTIFY (default sends a notice), AUTO_RENEW (rolls into a new term), or AUTO_REDEEM (returns principal to investor).
Set Note Status: New notes default to PENDING. Change to ACTIVE once funds have been received from the investor.
Save the Note: Click Save. The system calls POST /api/v1/investor-notes/notes and returns the new note record with its UUID.

Important: Do not set a note to ACTIVE until the investor's funds have been received and deposited. Interest accrual begins immediately for ACTIVE notes based on the issue date and day count convention.

Note Types

CEF Core supports three note types. Select the appropriate type during creation to configure the correct interest calculation and maturity behavior.

Fixed Rate Note (Standard)

The most common note type. A fixed interest rate for the life of the note with predictable interest payments on a set schedule.

Set note_type to FIXED
Interest rate remains constant from issue to maturity
Typical terms: 12, 24, 36, 48, or 60 months
Payment frequencies: MONTHLY or QUARTERLY most common

Variable Rate Note

The interest rate adjusts periodically based on a reference index plus a fixed spread. Rate resets occur automatically on schedule.

Set note_type to VARIABLE
rate_index: PRIME, SOFR, or TREASURY
rate_spread: margin above the index (e.g., 1.50)
rate_floor / rate_ceiling: minimum and maximum bounds
next_rate_reset_date and rate_reset_frequency_months: control when and how often the rate adjusts

Demand Note

An open-ended note with no fixed maturity date. The investor can request redemption at any time subject to a notice period.

Set note_type to DEMAND
is_demand_note: set to true
demand_notice_days: required advance notice (e.g., 30 or 90 days)
No maturity date is required; the note remains active indefinitely
Interest accrues daily and is paid on the configured frequency

NoteModal Form Sections

The NoteModal contains 10 collapsible sections. Only Basic Information is required. Expand additional sections as needed for the note type.

Section	Key Fields	When to Use
1. Basic Info	note_number, investor, principal, rate, term, frequency, dates, status	Always (required)
2. Account ID	account_line, external_id, base_code, suffix_code, account_number, sort_code	External system integration
3. GL & Account Type	gl_branch, gl_product	Multi-branch GL mapping
4. Balance Info	current_balance, original_amount, accrued_balance	System-managed (read-only after creation)
5. Interest & Dividend	annual_rate, ytd_interest, ytd_dividend, dividend_rate, calculation_method	Dividend-paying notes or custom calc methods
6. Payment Info	payment_amount, next_due_date	Override calculated payment amounts
7. Important Dates	date_opened, date_closed	Tracking lifecycle dates
8. Certificate Info	certificate_number, certificate_name, certificate_holder, issue_date	Physical certificate notes
9. IRA Info	ira_type, ira_rmd	Tax-advantaged IRA notes
10. Note Type & Features	note_type, callable, auto_reinvest	Non-standard note features

Certificate Notes

When an investor requests a physical investment certificate, expand the Certificate Info section in the NoteModal and fill in the following fields:

certificate_number -- Unique certificate ID printed on the physical document
certificate_name -- Name as it appears on the certificate (may differ from the CRM entity name for trust or joint ownership)
certificate_holder -- Registered holder or custodian

Pro Tip: The certificate number should follow a sequential numbering convention (e.g., CERT-2026-0001). This number appears on the printed certificate and is referenced by investors when contacting support.

IRA Notes: Tax-Advantaged Accounts

Investor notes held in Individual Retirement Accounts require special handling for tax reporting and required minimum distributions. Expand the IRA Info section in the NoteModal to configure these fields.

IRA Type

Set ira_type to the account classification: Traditional IRA, Roth IRA, SEP IRA, or SIMPLE IRA. This determines 1099 reporting rules.

Required Minimum Distribution

Set ira_rmd to true if the investor is age 73 or older and subject to RMD rules. The system flags these notes for year-end distribution processing.

Important: IRA notes may not use the REINVEST or COMPOUND interest payment methods if the investor is subject to RMD requirements. Interest payments must be distributed to the investor or their custodian.

API Reference

Note creation uses the following endpoints. All requests require authentication via JWT bearer token.

Method	Endpoint	Description
`POST`	`/api/v1/investor-notes/notes`	Create a new investor note
`GET`	`/api/v1/investor-notes/notes`	List notes (paginated, filterable by status/investor)
`GET`	`/api/v1/investor-notes/notes/:id`	Get a single note by UUID
`PUT`	`/api/v1/investor-notes/notes/:id`	Update note details
`PATCH`	`/api/v1/investor-notes/notes/:id/status`	Change note status (PENDING, ACTIVE, MATURED, REDEEMED, CLOSED)

Pro Tip: When calling the API from the frontend, always use the authFetch helper from @/lib/auth-fetch. It handles JWT authentication, token refresh, and error handling automatically.

Note Status Lifecycle

Every investor note moves through a defined set of statuses. Understanding this lifecycle helps you manage notes correctly.

PENDINGNote created, awaiting investor funds. No interest accrual.

ACTIVEFunds received. Daily interest accrual begins. Payments are scheduled.

MATUREDTerm has ended. Awaiting renewal decision or redemption processing.

REDEEMEDPrincipal and final interest returned to investor. GL entries posted.

CLOSEDAll activity complete. Note is archived and read-only.

Next Steps

After creating a note, learn how daily interest accrual works, including calculation methods and day count conventions.

Interest Accrual Guide

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