Types (2)
Secured Promissory Note – A moneylending agreement whereby a borrower puts up collateral as security.
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Unsecured Promissory Note – Used when a moneylender does not require a borrower to use their assets to secure a loan.
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Laws
- Interest & Usury Laws: Loan Interest and Protection Law (Usury Law)
- Usury Rate with Contract (41 Pa. Stat. § 201): No limit
- Usury Rate for loans of $50,000 or less (41 Pa. Stat. § 201): 6%, or as stated in the contract
- Usury Rate for Monetary Judgments (42 Pa. C.S. § 8101): 6% from the date of the verdict or judgment unless another amount is agreed upon by both parties.