The full featured word-processor includes font selection, bold, italic and underlining, font sizes from 8pt. to 48pt., a 16 color text palette, ordered and unordered lists, and tabbing. The text toolbar is customizable and there are three font favorites which store individual text styles that are also customizable. 

Notability comes with a variety of paper backgrounds for your notes. Choose a paper color and texture and a solid, lined, or grid pattern as an overlay. The grids come in four different sizes and are ideal for use in taking notes in math classes. The media menu allows you to add a photo from your Photo Library or take one with the iPads camera. From here you can also create figures, hand drawn notes for reference, which are inserted into your note. Use the Web Clip feature to insert a thumbnail of a webpage for reference. Images, figures, and web clips can all be resized and repositioned within the document and text automatically flows around it.

Notability integrates with Dropbox, and Google Drive to store and convert documents. PDFs and word documents import as images which can then me marked up using the drawing tools and highlighters. Notes can be organized by category and subject, sent as emails, and exported to Dropbox or Google Drive.

iTunes: https://itunes.apple.com/us/app/notability-take-notes-annotate/id360593530?mt=8
Developer: http://www.gingerlabs.com/