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Build a legally conforming Secured Promissory Note for Washington that includes all required terms under Washington promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.
Washington law governs promissory notes with specific usury limits and enforcement rules that shields both lending party and debtor. The usury limit in Washington is 12% or 4% above T-bill rate. Lenders have 6 years to file suit to collect on a promissory note in Washington. Washington law requires 4 specific elements in a valid promissory note.
Washington Promissory Note Requirements
Max Interest Rate12%
Rate Details12% or 4% above T-bill rate
Usury PenaltyForfeiture of all interest; double penalty
Statute of Limitations6 years
NotarizationRecommended
WitnessesRecommended (1)
Governing AgencyWashington Superior Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable
What to Include in a Washington Secured Promissory Note
Every Secured Promissory Note in Washington should include the following necessary 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% or 4% above T-bill rate under Washington 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.
Washington 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 Washington Secured Promissory Note
To complete a Secured Promissory Note in Washington, 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 4% above T-bill rate in Washington), the repayment terms, and any collateral details if applicable.
Our platform walks you through each section with a guided form tailored to Washington 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 Washington?
Washington caps interest at 12% or 4% above T-bill rate. Charging above the legal limit is usury - in Washington, the penalty is: forfeiture of all interest; double penalty. Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Washington?
Notarization is not required in Washington 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 Washington?
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 Washington 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 Washington's statute of limitations for written contracts.
What collateral can be used for a secured promissory note in Washington?
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 Washington Secured Promissory Note?
A valid Secured Promissory Note in Washington 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 Washington standards.
What is Washington State's usury limit for private loans?
Washington caps interest at 12% per year for written contracts unless the parties agree to a higher rate in writing (RCW §19.52.020). When agreed to in writing, there is no strict statutory maximum for most commercial loans. Consumer loans have additional protections under the Consumer Loan Act. Washington's criminal usury statute applies to rates above 25%. Washington's 6-year statute of limitations applies to written promissory notes.
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