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Iowa Demand Promissory Note

Create Iowa Demand Promissory Note - $7.99

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

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

Iowa law governs promissory notes with specific usury limits and enforcement rules that shields both creditor and borrowing party. The usury limit in Iowa is Floating cap published monthly by the Iowa Superintendent of Banking: 10-year Treasury average plus 2 points (6.25% for June 2026). Business and agricultural loans, and personal loans above the indexed threshold, may bear any agreed written rate. 5% legal rate absent a written contract.. For a demand note in Iowa, the 6-year limitation period runs from the date demand for payment is made. Iowa law requires 3 specific elements in a valid promissory note.

Iowa Promissory Note Requirements

Max Interest Rate 6.25%
Rate Details Floating cap published monthly by the Iowa Superintendent of Banking: 10-year Treasury average plus 2 points (6.25% for June 2026). Business and agricultural loans, and personal loans above the indexed threshold, may bear any agreed written rate. 5% legal rate absent a written contract.
Usury Penalty Judgment is limited to the principal (all interest forfeited) plus a forfeiture of 8% per year of the unpaid principal payable to the state (Iowa Code 535.5)
Statute of Limitations 6 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency Iowa District Courts
Required Elements Written agreement signed by borrower; Demand notice period; Interest rate disclosure

Iowa 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.

Iowa rules to know

  • Keep the interest rate at or below Iowa's usury cap of 6.25% per year (Floating cap published monthly by the Iowa Superintendent of Banking: 10-year Treasury average plus 2 points (6.25% for June 2026). Business and agricultural loans, and personal loans above the indexed threshold, may bear any agreed written rate. 5% legal rate absent a written contract.).
  • Notarization is not required in Iowa but is strongly recommended. A notarized note is self-authenticating in court and harder to dispute.
  • 1 witness is recommended in Iowa even though not legally required.
  • In Iowa, 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 Iowa may change; verify current rates before signing.

What to Include in a Iowa Demand Promissory Note

Every Demand Promissory Note in Iowa 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 Floating cap published monthly by the Iowa Superintendent of Banking: 10-year Treasury average plus 2 points (6.25% for June 2026). Business and agricultural loans, and personal loans above the indexed threshold, may bear any agreed written rate. 5% legal rate absent a written contract. under Iowa 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.

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

How to Complete a Iowa Demand Promissory Note

To complete a Demand Promissory Note in Iowa, 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 Floating cap published monthly by the Iowa Superintendent of Banking: 10-year Treasury average plus 2 points (6.25% for June 2026). Business and agricultural loans, and personal loans above the indexed threshold, may bear any agreed written rate. 5% legal rate absent a written contract. in Iowa), the repayment terms, and any collateral details if applicable.

Our platform walks you through each section with a guided form tailored to Iowa 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 Iowa?
Iowa caps interest at Floating cap published monthly by the Iowa Superintendent of Banking: 10-year Treasury average plus 2 points (6.25% for June 2026). Business and agricultural loans, and personal loans above the indexed threshold, may bear any agreed written rate. 5% legal rate absent a written contract.. Charging above the legal limit is usury - in Iowa, the penalty is: judgment is limited to the principal (all interest forfeited) plus a forfeiture of 8% per year of the unpaid principal payable to the state (iowa code 535.5). Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Iowa?
Notarization is not required in Iowa 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 Iowa?
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 Iowa 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 Iowa?
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 Iowa, 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 Iowa Demand Promissory Note?
A valid Demand Promissory Note in Iowa must include: Written agreement signed by borrower; Demand notice period; Interest rate disclosure. Our platform automatically includes all required elements formatted to Iowa standards.

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