Not a blank template - your details are filled in, formatted to Kentucky law, and ready to sign.
Prepare a legally valid Secured Promissory Note for Kentucky that features all required terms under Kentucky promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.
Kentucky law governs promissory notes with specific usury limits and enforcement rules that protects both creditor and borrowing party. The usury limit in Kentucky is 19% or 4% above Federal Reserve rate. Lenders have 15 years to file suit to collect on a promissory note in Kentucky. Kentucky law requires 4 specific elements in a valid promissory note.
Kentucky Promissory Note Requirements
Max Interest Rate19%
Rate Details19% or 4% above Federal Reserve rate
Usury PenaltyBorrower can recover twice the excess interest
Statute of Limitations15 years
NotarizationRecommended
WitnessesRecommended (1)
Governing AgencyKentucky Circuit Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable
What to Include in a Kentucky Secured Promissory Note
Every Secured Promissory Note in Kentucky should include the following necessary provisions: the full legal names and addresses of both the lender and obligor, 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. 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.
Kentucky 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 Kentucky Secured Promissory Note
To complete a Secured 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 Secured 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: borrower can recover twice the excess interest. 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. As a secured note, the lender may also seize and sell the collateral to recover the outstanding amount. Lenders have 15 years from the date of default to file a lawsuit under Kentucky's statute of limitations for written contracts.
What collateral can be used for a secured promissory note in Kentucky?
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 Kentucky Secured Promissory Note?
A valid Secured Promissory Note in Kentucky 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 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 - above 19% is considered usurious and may void the interest. For commercial loans between businesses, Kentucky courts apply more flexibility. Kentucky's 15-year statute of limitations applies to written contracts - one of the longest in the country, giving lenders substantial time to collect.
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