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