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Draft a legally legally sound Secured Promissory Note for South Carolina that includes all required terms under South Carolina promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.
South Carolina law governs promissory notes with specific usury limits and enforcement rules that secures both lending party and debtor. The usury limit in South Carolina is 8.75% or Federal Reserve rate plus 4%. Lenders have 3 years to file suit to collect on a promissory note in South Carolina. South Carolina law requires 4 specific elements in a valid promissory note.
South Carolina Promissory Note Requirements
Max Interest Rate8.75%
Rate Details8.75% or Federal Reserve rate plus 4%
Usury PenaltyForfeiture of all interest
Statute of Limitations3 years
NotarizationRecommended
WitnessesRecommended (1)
Governing AgencySouth Carolina Circuit Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable
What to Include in a South Carolina Secured Promissory Note
Every Secured Promissory Note in South Carolina should include the following critical 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 8.75% or Federal Reserve rate plus 4% under South Carolina 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.
South Carolina 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 South Carolina Secured Promissory Note
To complete a Secured Promissory Note in South Carolina, 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 8.75% or Federal Reserve rate plus 4% in South Carolina), the repayment terms, and any collateral details if applicable.
Our platform walks you through each section with a guided form tailored to South Carolina 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 South Carolina?
South Carolina caps interest at 8.75% or Federal Reserve rate plus 4%. Charging above the legal limit is usury - in South Carolina, 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 South Carolina?
Notarization is not required in South Carolina 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 South Carolina?
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 South Carolina court. As a secured note, the lender may also seize and sell the collateral to recover the outstanding amount. Lenders have 3 years from the date of default to file a lawsuit under South Carolina's statute of limitations for written contracts.
What collateral can be used for a secured promissory note in South Carolina?
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 South Carolina Secured Promissory Note?
A valid Secured Promissory Note in South Carolina 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 South Carolina standards.
What usury laws apply to South Carolina promissory notes?
South Carolina caps interest at 8.75% per year (the legal rate) for contracts that don't specify a rate (S.C. Code §34-31-20). Parties may agree to higher rates in writing - for most commercial transactions, South Carolina courts enforce the contracted rate. Consumer loans are subject to the South Carolina Consumer Protection Code with specific caps. South Carolina's 3-year statute of limitations applies to written contracts, one of the shorter periods in the country.
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