Kentucky Demand Promissory Note Overview
A demand promissory note in Kentucky 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 Kentucky is 8% (default).
8% default; 19% max by written agreement. Demand notes are commonly used in Kentucky for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Kentucky: No specific statutory period; reasonable demand required. The statute of limitations for collecting on a promissory note in Kentucky is 5 years (oral), 15 years (written), though the start date for demand notes can vary.
8% (default)
Usury rate cap
On Demand
No fixed maturity
5 years
Statute of limitations
30 Days
Recommended notice
Kentucky Legal Requirements
Kentucky has specific requirements for demand promissory notes:
Important: Kentucky Usury & Demand Rules
Kentucky's maximum interest rate is 8% (default). 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 Kentucky's 8% (default) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Kentucky as the governing jurisdiction
Making a Demand in Kentucky
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 Kentucky 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 circuit court
Collection Procedures in Kentucky
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Kentucky.
| Aspect | Kentucky Rule |
|---|---|
| Usury Rate | 8% (default) |
| Demand Notice | No specific statutory period; reasonable demand required |
| Statute of Limitations | 5 years (oral), 15 years (written) |
| Collection Procedure | Demand letter, suit in small claims or circuit court |
Sample Kentucky Demand Promissory Note
Below is a preview of our Kentucky-specific demand promissory note template.
STATE OF KENTUCKY
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: [Kentucky Address]
BORROWER:
Name: [Borrower Name]
Address: [Kentucky Address]
TERMS
Interest: [Rate]% per annum (max 8% (default) in KY)
Payable within 30 days of written demand by Lender
Kentucky Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Kentucky.
Official Kentucky Resources
Official resources for Kentucky lending laws and court procedures.
Other Kentucky Promissory Note Types
Need a different type of promissory note for Kentucky?
Create Your Kentucky Demand Promissory Note
Answer a few questions and download your Kentucky-compliant demand note in minutes.
No account required. Free to create and preview.