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Guides, tips, and state-specific information about promissory notes and lending transactions.
The Statute of Limitations on a Promissory Note in Tennessee
In Tennessee you generally get six years to sue on a written promissory note. Here is when the clock starts, what resets it, and what happens when it runs out.
Sarah Mccullen · August 13, 2026 at 1:07 PM ET 
Is a Promissory Note Legally Binding in South Dakota?
South Dakota gives you six years to sue on a contract and no usury ceiling at all on a rate the parties set in writing. Here is what that means for a private note.
Sarah Mccullen · August 12, 2026 at 11:59 AM ET 
What to Do When a Borrower Wants to Renegotiate the Payment Terms
A borrower asking for lower payments or a short pause is not bad news by itself. Here is how to change the terms the right way, in writing, without accidentally weakening your position.
James Stackpoole · August 11, 2026 at 12:06 PM ET 
How to Secure a Promissory Note With Collateral and a UCC Filing
Turning an unsecured note into a secured one takes three moving parts: a security agreement, a clear collateral description, and a perfected lien. Here's how each piece works.
Sarah Mccullen · August 10, 2026 at 12:56 PM ET 
When a Borrower Stops Responding: Demand Letters and Next Steps
The payments stopped and the texts go unanswered. Here is how a written demand letter works, why the deadline matters, and how to protect your options before the clock runs out.
James Stackpoole · August 7, 2026 at 11:53 AM ET 
Prepayment Penalties and Clauses: What Happens When a Borrower Pays Early
Paying a loan off early sounds like a pure win, until a prepayment penalty takes a bite. Here's what a prepayment clause does, why lenders add one, and how to word free prepayment.
Sarah Mccullen · August 6, 2026 at 12:37 PM ET 
What Is the Maximum Interest Rate You Can Charge in Utah?
Utah sets no general ceiling on a contract rate, so the parties pick the number. The catches are a 10 percent default rate, a federal cap Utah cannot lift, and unconscionability.
Sarah Mccullen · August 5, 2026 at 11:55 AM ET 
Negotiable vs Non-Negotiable Instruments: What Makes a Note Transferable
A promissory note can be freely bought, sold, and passed along, or it can be locked to the two people who signed it. The difference comes down to negotiability under UCC Article 3.
Sarah Mccullen · August 4, 2026 at 12:20 PM ET 
Can You Amend a Promissory Note on a Real Estate Loan?
Yes, and lenders do it constantly. The complication is not the note. It is the mortgage or deed of trust sitting in the public record, and what happens to its priority when the loan changes.
James Stackpoole · August 3, 2026 at 12:34 PM ET 
What Is a Demand Note, and When Is Payment Actually Due?
A demand note has no maturity date, so the money comes due when the holder asks. Here is what a proper demand looks like and when the limitations clock starts running.
James Stackpoole · July 31, 2026 at 1:11 PM ET 
How to Write a Promissory Note: A Complete Step-by-Step Guide
A step-by-step walkthrough of every element a valid promissory note needs, from parties and principal to default and signatures, plus the mistakes that sink DIY notes.
Sarah Mccullen · July 29, 2026 at 2:29 PM ET 
What Interest Rate Should You Actually Charge a Family Member?
Charge nothing and the IRS may still tax you on interest you never collected. Charge too much and you may break your state usury law. Here is how to find the safe middle.
James Stackpoole · July 28, 2026 at 12:35 PM ET 
Do E-Signatures Work on a Promissory Note? What In Writing Really Means
You can sign a promissory note with a click instead of a pen, and it holds up in court. Here is why federal and state law treat an electronic signature the same as ink, and the narrow cases where it does not.
Sarah Mccullen · July 27, 2026 at 12:01 PM ET 
The Five Elements That Turn a Promissory Note Into a Legal Contract
A promissory note is only as strong as the contract law behind it. Five elements decide whether your note is enforceable or just a piece of paper, and any one of them can quietly break the whole thing.
James Stackpoole · July 24, 2026 at 1:14 PM ET 
Promissory Note vs Mortgage vs Deed of Trust: How Property Loans Are Really Documented
A real-estate loan isn't one document. It's a promissory note that carries the promise to pay, plus a mortgage or deed of trust that lets the lender foreclose. Here's how the pieces actually fit.
Sarah Mccullen · July 23, 2026 at 12:17 PM ET 
What a Promissory Note Should Include: A Complete Checklist
A clause-by-clause checklist of everything a solid promissory note needs, from principal and legal interest to acceleration, prepayment, collateral, and attorney fees, with why each one matters.
Sarah Mccullen · July 22, 2026 at 12:19 PM ET 
Amortized vs Interest-Only vs Balloon: Choosing a Repayment Structure
Fully amortized, interest-only, and balloon notes move money on very different schedules. Here's the math behind each one and how to match the structure to the deal.
Sarah Mccullen · July 21, 2026 at 11:41 AM ET 
The Real Cost of Lending $5,000 to a Friend, With and Without a Note
Two versions of the same $5,000 loan to the same friend. One is written down. One is a handshake. Here is exactly how each one plays out when the payments stop.
James Stackpoole · July 20, 2026 at 12:24 PM ET 
Is a Promissory Note Legally Binding in Colorado?
You helped a family member with a loan, you wrote it down, and now you want to know whether Colorado will back you up if the payments stop. The answer is yes, a properly made promissory note is enforceable. Here is what the document needs and how the state's rules on time and interest affect you.
James Stackpoole · July 19, 2026 at 12:55 PM ET 
9 States Have No Interest-Rate Cap. In the Other 42, Charging Too Much Can Void Your Loan.
Nine states let you and your borrower agree to any interest rate in writing. The other 42 set a legal ceiling, and blowing past it can cost you the excess, all your interest, or worse.
Sarah Mccullen · July 17, 2026 at 11:47 AM ET 
Free Promissory Note Templates: What to Watch Out For
Free promissory note templates can work fine, and they can also quietly cost you the loan. Here is what a blank template leaves out, the real risks, and when free is genuinely enough.
James Stackpoole · July 16, 2026 at 12:11 PM ET 
Do You Have to Report Interest From a Personal Loan on Your Taxes?
If you lend money and charge interest, that interest is usually taxable income. Here's how the lender reports it, why the borrower rarely gets a deduction, and how the imputed-interest rule works.
Sarah Mccullen · July 15, 2026 at 12:52 PM ET 
Gift Letter vs Promissory Note: Documenting a Home Down Payment From Family
When a parent helps with a mortgage down payment, the paperwork decides everything. Here is how a gift letter and a promissory note differ, and which one your lender will actually accept.
James Stackpoole · July 14, 2026 at 12:17 PM ET 
Do You Need to Record or Register a Promissory Note?
A plain promissory note is a private contract, so most notes are never filed with any government office. The exception is when the note is secured by real estate or personal property. Here's exactly when filing matters and how to keep your note safe.
Sarah Mccullen · July 13, 2026 at 12:15 PM ET 
Is a Promissory Note Legally Binding in Kansas?
Yes, a properly drafted promissory note is enforceable in Kansas as a written agreement. Here's exactly what makes a note binding, how long you have to sue on it, and how Kansas caps interest. Get the terms right and you protect your right to collect.
Sarah Mccullen · July 10, 2026 at 11:54 AM ET 
Can You Charge a Late Fee on a Promissory Note?
A payment on your note is overdue again, and you are wondering whether you can add a fee to make late payments sting a little. The answer is yes, if you set it up correctly in advance. Here is how to write a late fee that holds up instead of one a court will throw out.
James Stackpoole · July 9, 2026 at 11:51 AM ET 
Promissory Note Statute of Limitations, by State
Someone owes you money on a signed note, and you have been waiting for them to make good on it. The problem is that the law does not let you wait forever. Here is how the deadline to sue works, when the clock starts, and how a single payment can reset it.
James Stackpoole · July 8, 2026 at 11:49 AM ET 
Is a Promissory Note Legally Binding in West Virginia?
Yes, a properly drafted promissory note is enforceable in West Virginia as a written contract. Here's exactly what makes a note binding, how long you have to sue on it, and how the state treats interest. The written-contract rules work in a careful lender's favor.
Sarah Mccullen · July 7, 2026 at 11:09 AM ET 
Is a Promissory Note Legally Binding in Maine?
A properly drafted promissory note is enforceable in Maine like any other written contract. Here's exactly what makes a Maine note binding, how long you have to sue on it, and how the state treats interest. Get the structure right and you protect your right to collect.
Sarah Mccullen · July 6, 2026 at 12:31 PM ET 
What Is the Maximum Legal Interest Rate in Minnesota?
Minnesota caps interest on most private loans, and charging over the line can cost you the interest entirely. Here's the general legal rate, the rate parties can agree to in writing, the consumer limits, and the penalty for going too high.
Sarah Mccullen · July 3, 2026 at 12:20 PM ET