Florida Demand Promissory Note Overview
A demand promissory note in Florida 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 Florida is 18% (under $500K).
18% for loans under $500K; 25% for loans of $500K+; criminal usury at 25%/45%. Demand notes are commonly used in Florida for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Florida: No specific statutory period; reasonable notice required. The statute of limitations for collecting on a promissory note in Florida is 4 years (oral), 5 years (written), though the start date for demand notes can vary.
18% (under $500K)
Usury rate cap
On Demand
No fixed maturity
4 years
Statute of limitations
30 Days
Recommended notice
Florida Legal Requirements
Florida has specific requirements for demand promissory notes:
Important: Florida Usury & Demand Rules
Florida's maximum interest rate is 18% (under $500K). No specific statutory period; reasonable notice 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 Florida's 18% (under $500K) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Florida as the governing jurisdiction
Making a Demand in Florida
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 Florida 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 county or circuit court
Collection Procedures in Florida
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Florida.
| Aspect | Florida Rule |
|---|---|
| Usury Rate | 18% (under $500K) |
| Demand Notice | No specific statutory period; reasonable notice required |
| Statute of Limitations | 4 years (oral), 5 years (written) |
| Collection Procedure | Demand letter, suit in county or circuit court |
Sample Florida Demand Promissory Note
Below is a preview of our Florida-specific demand promissory note template.
STATE OF FLORIDA
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: [Florida Address]
BORROWER:
Name: [Borrower Name]
Address: [Florida Address]
TERMS
Interest: [Rate]% per annum (max 18% (under $500K) in FL)
Payable within 30 days of written demand by Lender
Florida Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Florida.
Official Florida Resources
Official resources for Florida lending laws and court procedures.
Other Florida Promissory Note Types
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