Louisiana Demand Promissory Note Overview
A demand promissory note in Louisiana 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 Louisiana is 12%.
12% max by written agreement. Demand notes are commonly used in Louisiana for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Louisiana: Written demand (mise en demeure) required under civil code. The statute of limitations for collecting on a promissory note in Louisiana is 10 years (oral and written), though the start date for demand notes can vary.
12%
Usury rate cap
On Demand
No fixed maturity
10 years
Statute of limitations
30 Days
Recommended notice
Louisiana Legal Requirements
Louisiana has specific requirements for demand promissory notes:
Important: Louisiana Usury & Demand Rules
Louisiana's maximum interest rate is 12%. Written demand (mise en demeure) required under civil code. 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 Louisiana's 12% usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Louisiana as the governing jurisdiction
Making a Demand in Louisiana
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 Louisiana 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 (mise en demeure), suit in city, parish, or district court
Collection Procedures in Louisiana
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Louisiana.
| Aspect | Louisiana Rule |
|---|---|
| Usury Rate | 12% |
| Demand Notice | Written demand (mise en demeure) required under civil code |
| Statute of Limitations | 10 years (oral and written) |
| Collection Procedure | Demand letter (mise en demeure), suit in city, parish, or district court |
Sample Louisiana Demand Promissory Note
Below is a preview of our Louisiana-specific demand promissory note template.
STATE OF LOUISIANA
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: [Louisiana Address]
BORROWER:
Name: [Borrower Name]
Address: [Louisiana Address]
TERMS
Interest: [Rate]% per annum (max 12% in LA)
Payable within 30 days of written demand by Lender
Louisiana Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Louisiana.
Official Louisiana Resources
Official resources for Louisiana lending laws and court procedures.
Other Louisiana Promissory Note Types
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