West Virginia Convertible Promissory Note Overview
A convertible promissory note in West Virginia 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 West Virginia's state securities laws. The primary state exemption is: Section 32-4-202 exemption.
West Virginia 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 West Virginia's 8% usury limit, though most convertible note rates (2-8%) fall well below this threshold. Companies should work with an attorney familiar with West Virginia securities law to ensure full compliance.
Available
Securities exemption
Required
SOS filing
8%
Usury rate
Standard
Investor protections
West Virginia Requirements
West Virginia has specific requirements for convertible promissory notes that both parties should understand before entering into the agreement.
- Interest Rate: Must not exceed West Virginia's usury limit of 8%
- 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 West Virginia law
- Governing Law: The note should specify West Virginia as the governing jurisdiction
How to Create a West Virginia Convertible Promissory Note
Follow these steps to create a West Virginia-compliant convertible promissory note using our template.
Enter Party Information
Provide the full legal names and West Virginia addresses of both the lender (payee) and borrower (maker). Include the date the note is being executed.
Define Loan Terms
Specify the principal amount, interest rate (within West Virginia's 8% usury limit), payment schedule, and maturity date. Our template calculates the payment breakdown automatically.
Set Default and Late Payment Terms
Define the grace period, late fee amount, acceleration clause triggers, and notice requirements. Our West Virginia template includes compliant default language.
Sign and Execute
The borrower must sign and date the note. Consider notarization for added legal protection. Both parties should retain a copy. If secured by collateral, file the appropriate security instrument with West Virginia's recording office.
Securities Compliance in West Virginia
When issuing convertible promissory notes in West Virginia, you must comply with the state securities exemption (Section 32-4-202 exemption), file the required Form D filing required, ensure the interest rate stays within the 8% usury limit, and follow West Virginia's investor protection requirements (standard protections). Federal Form D must be filed with the SEC within 15 days of the first sale. Our West Virginia-specific template ensures compliance with both state and federal securities regulations.
West Virginia Usury Warning
West Virginia's usury limit is 8%. Charging interest above this rate can render your promissory note unenforceable and may subject the lender to penalties under West Virginia law. Our template automatically validates your interest rate against West Virginia's current limits.
West Virginia Convertible Promissory Note FAQ
Answers to common questions about convertible promissory notes in West Virginia.
Official West Virginia Resources
Use these official resources to verify West Virginia requirements for your convertible promissory note.
Other West Virginia Promissory Note Types
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Create your West Virginia Convertible Promissory Note in under 5 minutes.
Answer a few questions and download a West Virginia-compliant document, ready for the state agency.