Create Document - $7.99
How It Works States Document Types Tools Guides Blog About Create Document - $7.99

Colorado Demand Promissory Note

Create Colorado Demand Promissory Note - $7.99

Not a blank template - your details are filled in, formatted to Colorado law, and ready to sign.

Build a legally compliant Demand Promissory Note for Colorado that contains all required terms under Colorado promissory note law. Fill in your loan details and download your completed, ready-to-sign Demand Promissory Note as a professional PDF.

Colorado law governs promissory notes with specific usury limits and enforcement rules that shields both creditor and borrowing party. The usury limit in Colorado is 12% per year on consumer loans; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Rates of 45% or more are criminal usury.. For a demand note in Colorado, the 6-year limitation period runs from the date demand for payment is made. Colorado law requires 3 specific elements in a valid promissory note.

Colorado Promissory Note Requirements

Max Interest Rate 12%
Rate Details 12% per year on consumer loans; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Rates of 45% or more are criminal usury.
Usury Penalty Excess charges may be forfeited under the Uniform Consumer Credit Code; rates of 45% or more are criminal usury.
Statute of Limitations 6 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency Colorado District Courts
Required Elements Written agreement signed by borrower; Demand notice period; Interest rate disclosure

Colorado Demand Promissory Note Signing Checklist

Print this or save it as a PDF and use it at the signing. Review every item before any party puts pen to paper.

Before you sign

  • Both the lender and borrower read the full note before signing.
  • Confirm the principal amount, interest rate, and repayment terms match what was agreed.
  • Confirm any late fee amount and grace period are correct.
  • The lender keeps the original signed note in a safe place.
  • Each party keeps a signed copy for their own records.

Colorado rules to know

  • Keep the interest rate at or below Colorado's usury cap of 12% per year (12% per year on consumer loans; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Rates of 45% or more are criminal usury.).
  • Notarization is not required in Colorado but is strongly recommended. A notarized note is self-authenticating in court and harder to dispute.
  • 1 witness is recommended in Colorado even though not legally required.
  • In Colorado, the lender has 6 years from the date demand is made to file suit to collect.

In the note itself

  • Borrower's full legal name and current address.
  • Lender's full legal name and current address.
  • Principal loan amount written out in both numbers and words.
  • Annual interest rate (expressed as a percentage).
  • A statement that repayment is due upon the lender's written demand.
  • Late fee amount and grace period, if any.
  • Signatures of both parties (and witnesses if required).
  • Minimum notice period before repayment must be made (e.g., 30 days), if the parties agreed to one.

This checklist is a reference aid only. Consult an attorney for advice specific to your situation. Usury and enforcement rules for Colorado may change; verify current rates before signing.

What to Include in a Colorado Demand Promissory Note

Every Demand Promissory Note in Colorado should include the following important provisions: the full legal names and addresses of both the lender and obligor, the principal loan amount, the interest rate (which must not exceed 12% per year on consumer loans; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Rates of 45% or more are criminal usury. under Colorado law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause. A demand note should clearly state that repayment is due upon the lender's written demand, with any minimum notice period the parties have agreed to before demand is made.

Colorado requires the following elements in a valid promissory note: written agreement signed by borrower, demand notice period, interest rate disclosure.

How to Complete a Colorado Demand Promissory Note

To complete a Demand Promissory Note in Colorado, start by gathering the necessary information: the full legal names and addresses of both parties, the loan amount, the agreed-upon interest rate (must be at or below 12% per year on consumer loans; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Rates of 45% or more are criminal usury. in Colorado), the repayment terms, and any collateral details if applicable.

Our platform walks you through each section with a guided form tailored to Colorado requirements. Once you have filled in all details, you can preview the document, choose from five professional document styles, and download your completed Demand Promissory Note as a PDF.

Frequently Asked Questions

What is the maximum interest rate for a promissory note in Colorado?
Colorado caps interest at 12% per year on consumer loans; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Rates of 45% or more are criminal usury.. Charging above the legal limit is usury - in Colorado, the penalty is: excess charges may be forfeited under the uniform consumer credit code; rates of 45% or more are criminal usury.. Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Colorado?
Notarization is not required in Colorado for a promissory note to be legally valid. Notarizing it anyway is strongly recommended - it deters forgery claims, simplifies court enforcement, and makes the note self-authenticating as evidence. Having 1 witness is also recommended.
What happens if a borrower defaults on a promissory note in Colorado?
Upon default, the lender may demand immediate repayment of the full outstanding balance, charge any default interest rate specified in the note, and file suit in Colorado court. For a demand note, the 6-year limitation period runs from the date demand for payment is made.
How much notice must a lender give before demanding repayment in Colorado?
A demand promissory note is due whenever the lender demands repayment - there is no fixed maturity date. The amount of notice required depends on what is written in the note itself; if no notice period is specified, repayment may be demanded immediately. Many demand notes include a minimum notice period (e.g., 30 days) as a courtesy term. In Colorado, lenders have 6 years from when demand was first due to file suit.
What is the difference between a demand note and an installment note?
A demand promissory note has no fixed repayment schedule - the lender can call the loan at any time. An installment note has a set schedule of regular payments over a defined period. Demand notes are common for informal loans between family or friends, while installment notes are more common for larger, structured loans. Demand notes give lenders more flexibility but give borrowers less certainty.
What must be included in a Colorado Demand Promissory Note?
A valid Demand Promissory Note in Colorado must include: Written agreement signed by borrower; Demand notice period; Interest rate disclosure. Our platform automatically includes all required elements formatted to Colorado standards.
What are Colorado's usury laws for promissory notes?
Colorado regulates consumer loans under the Uniform Consumer Credit Code (C.R.S. 5-2-201), which caps a non-supervised consumer loan at 12% per year; licensed supervised lenders may charge tiered rates up to 36% on the first $1,000. Business loans are not subject to those consumer caps. If no rate is agreed to, the default legal rate is 8% per year, and rates of 45% or more are criminal usury. For a promissory note, Colorado allows six years to sue to collect.

Ready to Create Your Colorado Demand Promissory Note?

State-compliant interest rate limits, all required terms, and professional formatting included. Download your PDF instantly.

Create Colorado Demand Promissory Note - $7.99
Usury-compliant rates State-specific provisions Instant PDF download