A Georgia promissory note is a written promise made by a individual to pay back money they have borrowed from another individual or an entity. This type of agreement has a fixed date by which the money has to be paid back to the lender, in addition to any interest charged on the principal amount. The parties can decide whether the borrower must pay the amount due in full upon the due date, or whether they must make installment payments (weekly, monthly, quarterly, etc.).
A promissory note can be unsecure or secure, the latter indicating that the borrower must provide collateral to the lender. A breach of contract could result in the lender accepting the collateral as full payment or, if no collateral was provided, a legal action may be filed against the borrower.
- Interest & Usury Laws: Title 7, Chapter 4, Article 1
- Usury Rate Without a Contract (§ 7-4-2(a)(1)(A)): Over 7%
- Usury Rate With a Contract ($3,000 – $250,000) (§ 7-4-2(a)(1)(A)): 60% (§ 7-4-18(a))
- Usury Rate With a Contract ($3,000 or Less) (§ 7-4-2(a)(2)): Over 16%
- Usury Rate on Judgments (§ 7-4-12(a)): Over federal prime rate plus 3%.
- Usury Rate for Commercial Accounts (§ 7-4-16): Over 18% (After 30 days due.)
- Usury Rate Installment Loans ($3,000 or Less) (§ 7-3-11(1)): Over 10%
- Usury Rate for Pawnbrokers (§ 44-12-131(a)(4)): 25%/month for first ninety (90) days; 12.5%/month beyond ninety (90) days((including shop charges).
Secured Promissory Note – A loan that requires the borrower to provide physical collateral as security.