Legal Question in Banking Law in New York

You should never sign anything that obligates you to pay money to another without bringing the document to a lawyer for review. There is no such document as a "confessional judgment." There is a document called a "confession of judgment."

"Confession of judgment" is a legal document, a type of contract, in which a party agrees to let the other party enter a judgment against him or her. You are essentially contracting away his right to raise any legitimate defenses

That document is not one that I would recommend that any client sign. There are many other ways that are more appropriate to secure a debt obligation short of a confession of judgment.