Arizona Demand Promissory Note Overview
A demand promissory note in Arizona is a flexible loan agreement where the lender can request full repayment at any time. There is no fixed maturity date — the loan remains outstanding until the lender makes a formal demand. The maximum interest rate in Arizona is No cap (deregulated).
Arizona has no usury cap; rate governed by contract. Demand notes are commonly used in Arizona for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Arizona: No specific statutory notice period. The statute of limitations for collecting on a promissory note in Arizona is 3 years (oral), 6 years (written), though the start date for demand notes can vary.
No cap (deregulated)
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
Arizona Legal Requirements
Arizona has specific requirements for demand promissory notes:
Important: Arizona Usury & Demand Rules
Arizona's maximum interest rate is No cap (deregulated). No specific statutory notice period. Specify a clear notice period in your note to avoid disputes.
- Written Agreement: Must be in writing and signed by the borrower
- Demand Clause: Clearly state the note is “payable on demand”
- Notice Period: Specify days borrower has to pay after written demand (30-90 days recommended)
- Compliant Interest Rate: Must not exceed Arizona's No cap (deregulated) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Arizona as the governing jurisdiction
Making a Demand in Arizona
When the lender is ready to call in the loan, they must follow proper demand procedures:
Prepare the Demand Letter
State the total amount owed (principal + accrued interest), reference the original note, and specify the deadline for payment
Send via Certified Mail
Send the demand letter by certified mail with return receipt to prove delivery under Arizona law
Wait the Notice Period
Allow the borrower the full notice period specified in the note (or a reasonable time if not specified) to arrange payment
Pursue Collection if Unpaid
Demand letter, civil suit in justice or superior court
Collection Procedures in Arizona
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Arizona.
| Aspect | Arizona Rule |
|---|---|
| Usury Rate | No cap (deregulated) |
| Demand Notice | No specific statutory notice period |
| Statute of Limitations | 3 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, civil suit in justice or superior court |
Sample Arizona Demand Promissory Note
Below is a preview of our Arizona-specific demand promissory note template.
STATE OF ARIZONA
DEMAND PROMISSORY NOTE
Payable on Demand — No Fixed Maturity
FOR VALUE RECEIVED, the undersigned promises to pay ON DEMAND to the order of Lender the sum of $[Amount]
LENDER:
Name: [Lender Name]
Address: [Arizona Address]
BORROWER:
Name: [Borrower Name]
Address: [Arizona Address]
TERMS
Interest: [Rate]% per annum (max No cap (deregulated) in AZ)
Payable within 30 days of written demand by Lender
Arizona Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Arizona.
Official Arizona Resources
Official resources for Arizona lending laws and court procedures.
Other Arizona Promissory Note Types
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