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Louisiana Unsecured Promissory Note

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

Louisiana law governs promissory notes with specific usury limits and enforcement rules that defends both lending party and debtor. The usury limit in Louisiana is 12% maximum. Lenders have 5 years to file suit to collect on a promissory note in Louisiana. Louisiana law requires 3 specific elements in a valid promissory note.

Louisiana Promissory Note Requirements

Max Interest Rate 12%
Rate Details 12% maximum
Usury Penalty Forfeiture of all interest
Statute of Limitations 5 years
Notarization Recommended
Witnesses Recommended (2)
Governing Agency Louisiana District Courts
Required Elements Written agreement signed by borrower; Clear repayment terms; Interest rate disclosure

Louisiana Unsecured 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.

Louisiana rules to know

  • Keep the interest rate at or below Louisiana's usury cap of 12% per year (12% maximum).
  • Notarization is not required in Louisiana but is strongly recommended. A notarized note is self-authenticating in court and harder to dispute.
  • 2 witnesses are recommended in Louisiana even though not legally required.
  • In Louisiana, the lender has 5 years from the date of default to file suit to collect on the note.

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).
  • Maturity date (the date by which the full balance must be repaid).
  • Late fee amount and grace period, if any.
  • Signatures of both parties (and witnesses if required).
  • A clear statement that no collateral secures this note and the lender relies solely on the borrower's promise to repay.

This checklist is a reference aid only. Consult an attorney for advice specific to your situation. Usury and enforcement rules for Louisiana may change; verify current rates before signing.

What to Include in a Louisiana Unsecured Promissory Note

Every Unsecured Promissory Note in Louisiana should include the following essential provisions: the full legal names and addresses of both the lender and obligor, 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.

Louisiana requires the following elements in a valid promissory note: written agreement signed by borrower, clear repayment terms, interest rate disclosure. Civil law jurisdiction; notarization and two witnesses strongly recommended.

How to Complete a Louisiana Unsecured Promissory Note

To complete a Unsecured 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 Unsecured 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. Lenders have 5 years from the date of default to file a lawsuit under Louisiana's statute of limitations for written contracts.
Is an unsecured promissory note enforceable in Louisiana?
Yes. An unsecured promissory note is a legally enforceable contract in Louisiana even without collateral. If the borrower defaults, the lender can sue in Louisiana court and obtain a judgment, which can be used to garnish wages or bank accounts. Lenders have 5 years to file suit.
Is a promissory note the same as an IOU?
No. An IOU is an informal acknowledgment of a debt - it typically lacks repayment terms, interest rates, and default provisions. A promissory note is a formal legal contract with specific terms including the loan amount, interest rate, repayment schedule, and consequences of default. Promissory notes are far more enforceable in court than informal IOUs.
Is a promissory note legally binding in Louisiana?
Yes. A properly executed promissory note is an enforceable contract in Louisiana. It must identify both parties, state the loan amount and repayment terms, and be signed by the borrower. Lenders have 5 years to pursue legal action to collect on a defaulted note.
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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