A Massachusetts promissory note is a document that specifies the terms of a loan and ensures the borrower repays the debt by a certain date. It sets forth the loan’s interest rate, maturity date (the deadline for repayment), installment plan, and whether or not late fees will be charged. Furthermore, the lender may require the borrower to appoint a co-signer (someone who will assume the contract’s obligations if the borrower defaults) or secure the loan with collateral. If a default is not cured and cannot be resolved between the two (2) parties, the lender can use the document as evidence of a contract breach and sue the borrower.

In Massachusetts, parties can agree to any interest rate up to 20% so long as it’s in writing.