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Create a legally legally sound Secured Promissory Note for Louisiana that includes all required terms under Louisiana promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.
Louisiana law governs promissory notes with specific usury limits and enforcement rules that secures both lender and obligor. The usury limit in Louisiana is 12% maximum. Lenders have 10 years to file suit to collect on a promissory note in Louisiana. Louisiana law requires 4 specific elements in a valid promissory note.
Louisiana Promissory Note Requirements
Max Interest Rate12%
Rate Details12% maximum
Usury PenaltyForfeiture of all interest
Statute of Limitations10 years
NotarizationRecommended
WitnessesRecommended (2)
Governing AgencyLouisiana District Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable
What to Include in a Louisiana Secured Promissory Note
Every Secured Promissory Note in Louisiana should include the following critical provisions: the full legal names and addresses of both the creditor and borrowing party, the principal loan amount, the interest rate (which must not exceed 12% maximum under Louisiana 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.
Louisiana requires the following elements in a valid promissory note: written agreement signed by borrower, detailed collateral description, interest rate disclosure, lien filing if applicable. Civil law jurisdiction; notarization and two witnesses strongly recommended.
How to Complete a Louisiana Secured Promissory Note
To complete a Secured Promissory Note in Louisiana, 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% maximum in Louisiana), the repayment terms, and any collateral details if applicable.
Our platform walks you through each section with a guided form tailored to Louisiana 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 Louisiana?
Louisiana caps interest at 12% maximum. Charging above the legal limit is usury - in Louisiana, the penalty is: forfeiture of all interest. Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Louisiana?
Notarization is not required in Louisiana 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 2 witnesses is also recommended.
What happens if a borrower defaults on a promissory note in Louisiana?
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 Louisiana 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 Louisiana's statute of limitations for written contracts.
What collateral can be used for a secured promissory note in Louisiana?
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 Louisiana Secured Promissory Note?
A valid Secured Promissory Note in Louisiana 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 Louisiana standards.
What is Louisiana's usury limit for promissory notes?
Louisiana caps interest at 12% per year for conventional loans under Civil Code Article 2924 (Louisiana's civil law tradition governs contracts differently than common law states). Parties may contract for a higher rate up to 36% for most loans. Criminal usury applies above certain thresholds. Louisiana's 5-year prescriptive period (statute of limitations) applies to promissory notes - note that Louisiana uses "prescription" rather than the common law term "statute of limitations" due to its civil law heritage.
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