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Kentucky Demand Promissory Note

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

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

Kentucky law governs promissory notes with specific usury limits and enforcement rules that secures both creditor and borrowing party. The usury limit in Kentucky is 19% or 4% above Federal Reserve rate. For a demand note in Kentucky, the 6-year limitation period runs from the date demand for payment is made. Kentucky law requires 3 specific elements in a valid promissory note.

Kentucky Promissory Note Requirements

Max Interest Rate 19%
Rate Details 19% or 4% above Federal Reserve rate
Usury Penalty Knowing usury forfeits the entire interest; twice the interest paid may be recovered within two years (KRS 360.020)
Statute of Limitations 6 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency Kentucky Circuit Courts
Required Elements Written agreement signed by borrower; Demand notice period; Interest rate disclosure

Kentucky 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.

Kentucky rules to know

  • Keep the interest rate at or below Kentucky's usury cap of 19% per year (19% or 4% above Federal Reserve rate).
  • Notarization is not required in Kentucky but is strongly recommended. A notarized note is self-authenticating in court and harder to dispute.
  • 1 witness is recommended in Kentucky even though not legally required.
  • In Kentucky, 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 Kentucky may change; verify current rates before signing.

What to Include in a Kentucky Demand Promissory Note

Every Demand Promissory Note in Kentucky should include the following vital provisions: the full legal names and addresses of both the note holder and borrower, the principal loan amount, the interest rate (which must not exceed 19% or 4% above Federal Reserve rate under Kentucky 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.

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

How to Complete a Kentucky Demand Promissory Note

To complete a Demand Promissory Note in Kentucky, 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 19% or 4% above Federal Reserve rate in Kentucky), the repayment terms, and any collateral details if applicable.

Our platform walks you through each section with a guided form tailored to Kentucky 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 Kentucky?
Kentucky caps interest at 19% or 4% above Federal Reserve rate. Charging above the legal limit is usury - in Kentucky, the penalty is: knowing usury forfeits the entire interest; twice the interest paid may be recovered within two years (krs 360.020). Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Kentucky?
Notarization is not required in Kentucky 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 Kentucky?
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 Kentucky 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 Kentucky?
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 Kentucky, 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 Kentucky Demand Promissory Note?
A valid Demand Promissory Note in Kentucky must include: Written agreement signed by borrower; Demand notice period; Interest rate disclosure. Our platform automatically includes all required elements formatted to Kentucky standards.
What is Kentucky's usury limit for private promissory notes?
Kentucky caps interest at 8% per year as the legal rate for contracts that don't specify a rate (KRS §360.010). Parties may agree in writing to rates up to 19% per year for most personal loans. Charging above 19% is usurious and may void the excess interest. For commercial loans between businesses, Kentucky courts apply more flexibility. For a negotiable promissory note, the Uniform Commercial Code gives lenders six years to sue to collect (KRS 355.3-118).

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