Types (2)
Secured Promissory Note – An agreement whereby the borrower pledges an asset or personal property as collateral.
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Unsecured Promissory Note – A promissory note that is not backed by the borrower’s assets.
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Laws
- Interest & Usury Laws: Chapter 14 – Interest Rates Generally, Chapter 15 – Interest On Home Loans
- Usury Rate with Contract (§ 47-14-103(2), TN Dept. of Financial Institutions): 7.25%
- Usury Rate without Contract (§ 47-14-103(3)): 10%
- Usury Rate for Small Single-Payment Loans (§ 47-14-104(a)(1)): 10% if a single-payment loan is for an amount of $1,000 or less.
- Usury Rate for Home Loans (§ 47-15-102(b), TN Dept. of Financial Institutions): 5.91%