Free Tennessee Convertible Promissory Note Forms

Tennessee Convertible Promissory Note Overview

A convertible promissory note in Tennessee is a debt instrument commonly used in startup financing that converts into equity upon a triggering event. As a security, it must comply with both federal regulations (SEC Rule 506 under Regulation D) and Tennessee's state securities laws. The primary state exemption is: Section 48-1-103 exemption.

Tennessee requires Form D filing required when issuing convertible notes. The state provides standard protections for note holders through its securities regulatory framework. The interest rate must comply with Tennessee's 10% usury limit, though most convertible note rates (2-8%) fall well below this threshold. Companies should work with an attorney familiar with Tennessee securities law to ensure full compliance.

Tennessee Requirements

Tennessee has specific requirements for convertible promissory notes that both parties should understand before entering into the agreement.

• Interest Rate: Must not exceed Tennessee's usury limit of 10%
• Written Agreement: Must be in writing and signed by the borrower (maker)
• Clear Terms: Principal amount, interest rate, payment schedule, and maturity date must be clearly stated
• Default Terms: Late fees, grace periods, and acceleration clause must comply with Tennessee law
• Governing Law: The note should specify Tennessee as the governing jurisdiction

How to Create a Tennessee Convertible Promissory Note

Follow these steps to create a Tennessee-compliant convertible promissory note using our template.

Securities Compliance in Tennessee

When issuing convertible promissory notes in Tennessee, you must comply with the state securities exemption (Section 48-1-103 exemption), file the required Form D filing required, ensure the interest rate stays within the 10% usury limit, and follow Tennessee's investor protection requirements (standard protections). Federal Form D must be filed with the SEC within 15 days of the first sale. Our Tennessee-specific template ensures compliance with both state and federal securities regulations.

Tennessee Convertible Promissory Note FAQ

Answers to common questions about convertible promissory notes in Tennessee.

Official Tennessee Resources

Use these official resources to verify Tennessee requirements for your convertible promissory note.

Other Tennessee Promissory Note Types

Need a different type of promissory note for Tennessee? We offer state-specific templates for every type of promissory note.