Georgia Demand Promissory Note Overview
A demand promissory note in Georgia 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 Georgia is 7% (default).
7% default; 60% maximum by written contract. Demand notes are commonly used in Georgia for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Georgia: No specific statutory demand period. The statute of limitations for collecting on a promissory note in Georgia is 4 years (oral), 6 years (written), though the start date for demand notes can vary.
7% (default)
Usury rate cap
On Demand
No fixed maturity
4 years
Statute of limitations
30 Days
Recommended notice
Georgia Legal Requirements
Georgia has specific requirements for demand promissory notes:
Important: Georgia Usury & Demand Rules
Georgia's maximum interest rate is 7% (default). No specific statutory demand 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 Georgia's 7% (default) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Georgia as the governing jurisdiction
Making a Demand in Georgia
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 Georgia 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 magistrate, state, or superior court
Collection Procedures in Georgia
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Georgia.
| Aspect | Georgia Rule |
|---|---|
| Usury Rate | 7% (default) |
| Demand Notice | No specific statutory demand period |
| Statute of Limitations | 4 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, suit in magistrate, state, or superior court |
Sample Georgia Demand Promissory Note
Below is a preview of our Georgia-specific demand promissory note template.
STATE OF GEORGIA
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: [Georgia Address]
BORROWER:
Name: [Borrower Name]
Address: [Georgia Address]
TERMS
Interest: [Rate]% per annum (max 7% (default) in GA)
Payable within 30 days of written demand by Lender
Georgia Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Georgia.
Official Georgia Resources
Official resources for Georgia lending laws and court procedures.
Other Georgia Promissory Note Types
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