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California Promissory Notes

Create a legally compliant California promissory note that complies with state usury limits and includes all required provisions. Choose the note type that fits your lending situation, fill out the guided form, and download your professional PDF for $7.99.

California Usury Law and Note Requirements

Max Interest Rate 10%
Rate Description 10% for personal loans by written contract
Default Rate 7%
Penalty for Exceeding Usury Limit Treble interest penalty; criminal misdemeanor possible
Statute of Limitations 4 years
Notarization Required Not required (recommended)
Witness Required Not required
Governing Agency California Superior Courts

California usury law is governed by California Superior Courts. The maximum allowable interest rate is 10% (10% for personal loans by written contract). Penalties for exceeding the usury limit include: Treble interest penalty; criminal misdemeanor possible. The statute of limitations for enforcing a promissory note in California is 4 years. Notarization is not required but recommended. Our documents are designed to comply with California law and include all required provisions.

Frequently Asked Questions

What is the maximum interest rate for a promissory note in California?

California caps the maximum interest rate at 10% (10% for personal loans by written contract). Exceeding this limit may result in penalties: Treble interest penalty; criminal misdemeanor possible. If no rate is specified, the default legal rate is 7%. Our documents include a usury savings clause for additional protection.

Does a promissory note need to be notarized in California?

Notarization is not legally required in California, but it is strongly recommended. A notarized note is easier to enforce in court and helps verify the identities of all parties. While not required, having 1 witness is recommended.

How much does a California promissory note cost?

Each promissory note costs $7.99. Choose your note type, fill in your details through our guided form, and download your completed, California-compliant PDF instantly. Re-download available for 5 days.

What is California's usury limit for private promissory notes?

California's Constitution (Article XV) caps interest at 10% per year for non-exempt lenders making loans to individuals for personal, family, or household purposes. Loans for business, commercial, or investment purposes have a higher cap (the higher of 10% or 5% above the Federal Reserve discount rate). Banks, credit unions, licensed lenders, and seller-financed real estate transactions are exempt. Loans that violate California's usury law are void as to the interest portion.

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