A Connecticut promissory note is a binding document between a lender and a borrower that contains the terms of a loan arrangement between the parties. This document contains the contact information of both parties, the amount of money owed by the borrower, the amount of interest, the frequency of payments, and any late fees. Furthermore, the parties may negotiate whether the borrower will have to put up collateral to ensure prompt payback (“secure” or “unsecured”). When both parties have signed the form, it becomes legally binding. Failure on the borrower’s part to pay back the money could result in legal action initiated by the lender.
- Interest & Usury Laws: Chapter 673
- Usury Rate for Loans (excluding pawnbrokers) (§ 37-4): Over 12%
- Usury Rate for Loans (pawnbrokers only) (§ 21-44): $15 or more, over 5%/month; between $15 and $50, over 3%/month; more than $50, over 2%/month.
- Usury Rate for Damages in Civil Actions/Arbitration (§ 37-3a(a)): Over 10%
- Usury Rate for Damages in Negligence Actions (§ 37-3b(a)): Over 10%
- Usury Rate for Hospital Services Debt (§ 37-3a(b)): Over 5%
- Usury Rate for Income Tax Refund Anticipation Loans (§ 42-480(d)): Over 60% for initial 21 days; over 20% after 21 days.
- Usury Rate for Community Residential Facilities Loans (§ 17a-220(9)): Over 6%