Delaware Demand Promissory Note Overview
A demand promissory note in Delaware 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 Delaware is No cap (5% over Fed rate for unlicensed).
5% above Fed rate for unlicensed; no cap for licensed lenders. Demand notes are commonly used in Delaware for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Delaware: Reasonable demand required; no fixed statutory period. The statute of limitations for collecting on a promissory note in Delaware is 3 years (oral and written), though the start date for demand notes can vary.
No cap (5% over Fed rate for unlicensed)
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
Delaware Legal Requirements
Delaware has specific requirements for demand promissory notes:
Important: Delaware Usury & Demand Rules
Delaware's maximum interest rate is No cap (5% over Fed rate for unlicensed). Reasonable demand required; no fixed statutory 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 Delaware's No cap (5% over Fed rate for unlicensed) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Delaware as the governing jurisdiction
Making a Demand in Delaware
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 Delaware 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 Justice of the Peace or Superior Court
Collection Procedures in Delaware
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Delaware.
| Aspect | Delaware Rule |
|---|---|
| Usury Rate | No cap (5% over Fed rate for unlicensed) |
| Demand Notice | Reasonable demand required; no fixed statutory period |
| Statute of Limitations | 3 years (oral and written) |
| Collection Procedure | Demand letter, suit in Justice of the Peace or Superior Court |
Sample Delaware Demand Promissory Note
Below is a preview of our Delaware-specific demand promissory note template.
STATE OF DELAWARE
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: [Delaware Address]
BORROWER:
Name: [Borrower Name]
Address: [Delaware Address]
TERMS
Interest: [Rate]% per annum (max No cap (5% over Fed rate for unlicensed) in DE)
Payable within 30 days of written demand by Lender
Delaware Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Delaware.
Official Delaware Resources
Official resources for Delaware lending laws and court procedures.
Other Delaware Promissory Note Types
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