Demand promissory note

Before you prepare the document

Identify each borrower and holder, the original debt and funding dates, funds actually received, payment records, interest and other charges. Confirm any collateral and any existing obligation it continues to secure. Omit personal account numbers from the document.

Read the PDF example · Download the Word example

Interest, security and location

Texas interest and prepayment. Ordinary interest is generally capped at 10% unless another law authorizes it. A written contract can use a dated weekly ceiling. For example, the published household and commercial weekly ceilings were both 18% on May 15, 2026. The statutory limits and publication period matter. Check the agreement or renewal date and distinguish a fixed household loan from a variable commercial loan. A Texas loan on property that is or will be the borrower’s residential homestead can collect a prepayment charge above 12% interest only if a federal agency requires that charge. A contract silent on interest and an express zero-interest agreement are different. Texas Credit Letter and rate archive · Texas Finance Code §302.102

Texas real-property security. A promissory note alone does not create a land lien. Identify the separate property instrument, the owners and any required spouse consent. For a homestead, trace original purchase money to the price. A later cash-out advance is a different category, with lender eligibility, lien-to-value, enforcement and other requirements. Only a lawful real-property process can transfer possession of land. Texas Constitution, Article XVI, Section 50 · Property Code §51.002

Texas motor vehicle liens. Check the jurisdiction covering the vehicle by title, the owner and how the vehicle is used. A Texas choice-of-law clause does not establish that there is a Texas title. For a Texas-titled private vehicle, use the title record to perfect the lien. A selling dealer’s own grant in qualifying inventory uses Article 9. Compare the actual secured obligation and balance tender before releasing a title. Texas title application · Texas lien release form · Texas Transportation Code

California. Article XV sets a 10% ordinary ceiling for qualifying personal, family or household borrowing and distinguishes it from other uses, including buying, constructing or improving real property. The latter calculation compares 10% to five points above the qualifying district rate on the statutory date. Identify the primary use, the earlier contract or funding date, fees and any specific lender authority. A California mortgage discharge and a trustee’s reconveyance have different filing steps. California Civil Code §2941

New York. For ordinary covered private credit, identify the borrower, the ordinary 16% civil screen, the loan or written installment commitment, actual consideration and any qualifying residential collateral. The $250,000 civil-rate exception has a one- or two-family residential security exception. The separate $2.5 million rule and the criminal interest threshold have different conditions. A rate of exactly 25% does not by itself satisfy a rule requiring more than 25%. General Obligations Law §5-501

Florida. The ordinary 18% equivalent simple-interest limit includes a facility of exactly $500,000. The section 687.071 threshold of more than 25% applies to the larger-loan branch when initial debt, reasonably expected aggregate debt, or debt previously outstanding exceeds that amount. Include interest-like charges at their value upon receipt and spread them over the stated term. The larger-loan test and the separate culpability requirements for criminal usury must be assessed separately. Florida Statutes §687.03 · §687.071

When the parties, collateral, loan negotiation or repayment involve different states, record each location and determine the applicable requirements before signing. Verify the filed instrument and applicable filing law separately from any law chosen for the note.

Borrower protections

Pre-service debt can qualify for the Servicemembers Civil Relief Act interest reduction. A covered mortgage can qualify for an additional year. The Military Lending Act separately considers credit extended to covered servicemembers and dependents. Verify applicable federal disclosures before consummation. 50 U.S.C. §3937 · CFPB Military Lending Act guidance