When a borrower pays off a note, do we send him the original note stamped “paid” or should we keep the original note and send the borrower a copy?

In our view, it does not matter whether you send the original or a copy of the note, provided both are clearly marked as having been satisfied (for example, as in “paid”). We are not aware of any law or regulation that requires lenders to retain or relinquish the original note after a loan is paid off.