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Oregon Unsecured Promissory Note

Create Oregon Unsecured Promissory Note - $7.99

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

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

Oregon law governs promissory notes with specific usury limits and enforcement rules that shields both creditor and borrowing party. The usury limit in Oregon is 12% or 5% above Federal Reserve rate. Lenders have 6 years to file suit to collect on a promissory note in Oregon. Oregon law requires 3 specific elements in a valid promissory note.

Oregon Promissory Note Requirements

Max Interest Rate 12%
Rate Details 12% or 5% above Federal Reserve rate
Usury Penalty Forfeiture of all interest
Statute of Limitations 6 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency Oregon Circuit Courts
Required Elements Written agreement signed by borrower; Clear repayment terms; Interest rate disclosure

Oregon 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.

Oregon rules to know

  • Keep the interest rate at or below Oregon's usury cap of 12% per year (12% or 5% above Federal Reserve rate).
  • Notarization is not required in Oregon but is strongly recommended. A notarized note is self-authenticating in court and harder to dispute.
  • 1 witness is recommended in Oregon even though not legally required.
  • In Oregon, the lender has 6 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 Oregon may change; verify current rates before signing.

What to Include in a Oregon Unsecured Promissory Note

Every Unsecured Promissory Note in Oregon should include the following necessary 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 12% or 5% above Federal Reserve rate under Oregon law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause.

Oregon requires the following elements in a valid promissory note: written agreement signed by borrower, clear repayment terms, interest rate disclosure.

How to Complete a Oregon Unsecured Promissory Note

To complete a Unsecured Promissory Note in Oregon, 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% or 5% above Federal Reserve rate in Oregon), the repayment terms, and any collateral details if applicable.

Our platform walks you through each section with a guided form tailored to Oregon 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 Oregon?
Oregon caps interest at 12% or 5% above Federal Reserve rate. Charging above the legal limit is usury - in Oregon, 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 Oregon?
Notarization is not required in Oregon 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 Oregon?
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 Oregon court. Lenders have 6 years from the date of default to file a lawsuit under Oregon's statute of limitations for written contracts.
Is an unsecured promissory note enforceable in Oregon?
Yes. An unsecured promissory note is a legally enforceable contract in Oregon even without collateral. If the borrower defaults, the lender can sue in Oregon court and obtain a judgment, which can be used to garnish wages or bank accounts. Lenders have 6 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 Oregon?
Yes. A properly executed promissory note is an enforceable contract in Oregon. It must identify both parties, state the loan amount and repayment terms, and be signed by the borrower. Lenders have 6 years to pursue legal action to collect on a defaulted note.
What interest rate limits apply to Oregon promissory notes?
Oregon does not impose a general usury cap for written contracts between private parties - any rate agreed to in writing is generally enforceable (ORS §82.010). If no rate is specified, 9% per year applies as the default. Consumer loans are regulated under Oregon's consumer finance laws with specific rate limits. Oregon's 6-year statute of limitations applies to written promissory notes. Oregon courts may still refuse to enforce unconscionable interest rates.

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