I'm not seeing what you think that does. Whether the note makes the payee the CA or SA is dependent on the contract. Either way you'll still either need to pick up a check from the buyer, and give them a receipt for that check, or have them deliver it directly. The same steps will be required at the point the note is paid.
I sure hope Annie picks up on this topic. You have just doubled your work Jim. Since a promissory note is a negotiable instrument then you have to take the original note, give the buyer a receipt for that note and turn the original into Branch Managing Broker to be held. When that note is redeemed you will have to give it back to the buyer and receive a receipt from the buyer for the note going back to them....and then do another receipt for the check that you receive......I don't let my brokers use promissory notes.....I have yet to meet a broker who handles them correctly and you double your work, responsibility and liability. There are other ways to handle later deposit of EM or other concerns than using a promissory note, form 31....in my non-attorney opinion.
You raise some valid points. I tend to use a non-negotiable note, but for an entirely different reason--electronic signatures. I'm very uncomfortable with negotiable instruments and electronic signatures because every copy is a new original! Sure it may be difficult to negotiate an EM note to a holder in due course, but why risk it? A lot of this is problematic just due to industry standard--we're shooting ourselves in the foot! The industry standard is to send a copy of the check along with the receipt, even though sending banking information is a horrible practice and doesn't do anything more than just providing a receipt. Also, the way the standard forms are drafted if the agent doesn't have the check in hand the deposit of the money is due later. There's really no reason for that. I agree with you there are better options.