Connecticut Demand Promissory Note Overview
A demand promissory note in Connecticut 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 Connecticut is 12%.
12% general cap; no limit for business loans over $10,000. Demand notes are commonly used in Connecticut for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Connecticut: No specific statutory period; reasonable demand required. The statute of limitations for collecting on a promissory note in Connecticut is 3 years (oral), 6 years (written), though the start date for demand notes can vary.
12%
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
Connecticut Legal Requirements
Connecticut has specific requirements for demand promissory notes:
Important: Connecticut Usury & Demand Rules
Connecticut's maximum interest rate is 12%. No specific statutory period; reasonable demand required. 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 Connecticut's 12% usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Connecticut as the governing jurisdiction
Making a Demand in Connecticut
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 Connecticut 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, suit in small claims or superior court
Collection Procedures in Connecticut
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Connecticut.
| Aspect | Connecticut Rule |
|---|---|
| Usury Rate | 12% |
| Demand Notice | No specific statutory period; reasonable demand required |
| Statute of Limitations | 3 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, suit in small claims or superior court |
Sample Connecticut Demand Promissory Note
Below is a preview of our Connecticut-specific demand promissory note template.
STATE OF CONNECTICUT
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: [Connecticut Address]
BORROWER:
Name: [Borrower Name]
Address: [Connecticut Address]
TERMS
Interest: [Rate]% per annum (max 12% in CT)
Payable within 30 days of written demand by Lender
Connecticut Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Connecticut.
Official Connecticut Resources
Official resources for Connecticut lending laws and court procedures.
Other Connecticut Promissory Note Types
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