Prepare a legally compliant Secured Promissory Note for Indiana that contains all required terms under Indiana promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.
Indiana law governs promissory notes with specific usury limits and enforcement rules that shields both lender and obligor. The usury limit in Indiana is 21% under UCCC. Lenders have 10 years to file suit to collect on a promissory note in Indiana. Indiana law requires 4 specific elements in a valid promissory note.
Indiana Promissory Note Requirements
Max Interest Rate 21%
Rate Details 21% under UCCC
Usury Penalty UCCC remedies only
Statute of Limitations 10 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency Indiana Circuit Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable
What to Include in a Indiana Secured Promissory Note
Every Secured Promissory Note in Indiana should include the following important provisions: the full legal names and addresses of both the lending party and debtor, the principal loan amount, the interest rate (which must not exceed 21% under UCCC under Indiana law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause. Because this is a secured promissory note, you must also describe the collateral in detail, including how it will be valued and the lender's right to seize it upon default.
Indiana requires the following elements in a valid promissory note: written agreement signed by borrower, detailed collateral description, interest rate disclosure, lien filing if applicable.
How to Complete a Indiana Secured Promissory Note
To complete a Secured Promissory Note in Indiana, 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 21% under UCCC in Indiana), the repayment terms, and any collateral details if applicable.
Our platform walks you through each section with a guided form tailored to Indiana requirements. Once you have filled in all details, you can preview the document, choose from five professional document styles, and download your completed Secured Promissory Note as a PDF.
Frequently Asked Questions
What is the maximum interest rate for a promissory note in Indiana?
Indiana caps interest at 21% under UCCC. Charging above the legal limit is usury - in Indiana, the penalty is: uccc remedies only. Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Indiana?
Notarization is not required in Indiana 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 Indiana?
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 Indiana court. As a secured note, the lender may also seize and sell the collateral to recover the outstanding amount. Lenders have 10 years from the date of default to file a lawsuit under Indiana's statute of limitations for written contracts.
What collateral can be used for a secured promissory note in Indiana?
Common collateral for secured promissory notes includes real estate, vehicles, equipment, bank accounts, or valuable personal property. The collateral must be described in detail in the note - make, model, serial number, or legal property description depending on the asset type. The lender's right to seize and sell the collateral upon default must also be clearly stated. For real estate collateral, a separate deed of trust or mortgage is typically also required.
What is the difference between a secured and unsecured promissory note?
A secured promissory note is backed by collateral - if the borrower defaults, the lender can seize the collateral to recover the debt. An unsecured note relies solely on the borrower's promise to repay; the lender must sue and obtain a judgment to collect. Secured notes carry less risk for the lender and typically carry lower interest rates as a result.
What must be included in a Indiana Secured Promissory Note?
A valid Secured Promissory Note in Indiana must include: Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable. Our platform automatically includes all required elements formatted to Indiana standards.
What is Indiana's interest rate limit for private promissory notes?
Indiana caps interest for consumer loans at 21% per year (Ind. Code §24-4.5-3-508). For commercial loans between private parties, Indiana generally allows parties to contract for any rate agreed to in writing, with courts applying a reasonableness standard for extraordinarily high rates. Indiana's 6-year statute of limitations applies to written promissory notes. Lenders should clearly specify the interest rate in the note - if no rate is stated, Indiana's default rate of 8% applies.
