Types (2)
Secured Promissory Note – A lending agreement where a borrower pledges collateral to a lender.
Download: PDF, Word (.docx), OpenDocument
Unsecured Promissory Note – This document states a borrower’s promise to repay a loan without pledging any collateral.
Download: PDF, Word (.docx), OpenDocument
Laws
- Interest & Usury Laws: Chapter 47-14: Loans of Money
- Usury Rate with Contract (§ 47-14-09): The 6-month US Treasury Bills rate + 5.5%; however, the maximum rate ceiling cannot be less than 7%. The current rate through 2025 can be found here. The following exceptions apply:
- Loans exceeding $35,000
- A transaction under $10,000 with a licensed pawnbroker
- Loans made to a trust, foreign or domestic corporation or LLC, cooperative corporation, or association
- Loans made by a state or federally-regulated lending institution
- Loans made to a partnership, LLC, or association that files a state or federal income tax return
- Usury Rate without Contract (§ 47-14-05): 6%
- Usury Rate for Monetary Judgments (§ 28-20-34): The prime rate + 3%