Not a blank template - your details are filled in, formatted to Tennessee law, and ready to sign.
Generate a legally compliant Secured Promissory Note for Tennessee that covers all required terms under Tennessee promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.
Tennessee law governs promissory notes with specific usury limits and enforcement rules that secures both lending party and debtor. The usury limit in Tennessee is 10% or 4% above prime rate. Lenders have 6 years to file suit to collect on a promissory note in Tennessee. Tennessee law requires 4 specific elements in a valid promissory note.
Tennessee Promissory Note Requirements
Max Interest Rate10%
Rate Details10% or 4% above prime rate
Usury PenaltyForfeiture of all interest; triple penalty if willful
Statute of Limitations6 years
NotarizationRecommended
WitnessesRecommended (1)
Governing AgencyTennessee Circuit Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable
What to Include in a Tennessee Secured Promissory Note
Every Secured Promissory Note in Tennessee should include the following vital provisions: the full legal names and addresses of both the lender and obligor, the principal loan amount, the interest rate (which must not exceed 10% or 4% above prime rate under Tennessee 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.
Tennessee 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 Tennessee Secured Promissory Note
To complete a Secured Promissory Note in Tennessee, 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 10% or 4% above prime rate in Tennessee), the repayment terms, and any collateral details if applicable.
Our platform walks you through each section with a guided form tailored to Tennessee 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 Tennessee?
Tennessee caps interest at 10% or 4% above prime rate. Charging above the legal limit is usury - in Tennessee, the penalty is: forfeiture of all interest; triple penalty if willful. Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Tennessee?
Notarization is not required in Tennessee 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 Tennessee?
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 Tennessee court. As a secured note, the lender may also seize and sell the collateral to recover the outstanding amount. Lenders have 6 years from the date of default to file a lawsuit under Tennessee's statute of limitations for written contracts.
What collateral can be used for a secured promissory note in Tennessee?
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 Tennessee Secured Promissory Note?
A valid Secured Promissory Note in Tennessee 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 Tennessee standards.
What usury limits apply to private promissory notes in Tennessee?
Tennessee caps interest at 10% per year as a default, but parties may agree in writing to any rate up to 24% per year for most loans (T.C.A. §47-14-103). Rates above 24% are subject to Tennessee's usury penalty - forfeiture of all interest and a fine equal to twice the interest charged. Tennessee's 6-year statute of limitations applies to written contracts. Business loans between sophisticated parties may have more flexibility under Tennessee's commercial lending statutes.
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