An Arkansas promissory note is a document that represents a debt agreement between two parties, the lender and the borrower. The term promissory in this case means the borrower promises to pay the lender a definite sum of money in addition to interest (and possibly fees if the payment is late) by a certain date. A promissory note covers all terms and conditions of the arrangement, including payment and interest amount, type of payment (installment or lump sum), fees, collateral (if applicable), and the due date of the payment. This form provides the lender with a record of the loan, allowing them to take legal action should the borrower fail to pay them back the full amount due.
- Interest & Usury Laws: Title 4, Chapter 57
- Usury Rate (§ 4-57-104): Arkansas Constitution, Amendment 89 sets the maximum lawful interest rate at 17%. (If a contract does not specify an interest rate, the rate shall be 6%.)
- Usury Rate for Judgments (§ 16-65-114(a)(2)): Over 17% with a contract; over 6% without a contract (Arkansas Constitution, Amendment 89).
- Usury Rate for Policy (Life Insurance) Loan (§ 23-81-109(c)(1)): Over 8% or an adjustable maximum interest rate subject to usury limitation.
- Usury Rate for Bonds (§ 14-142-210): Over 17% with a contract; over 6% without a contract (Arkansas Constitution, Amendment 89).