Massachusetts Demand Promissory Note Overview
A demand promissory note in Massachusetts 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 Massachusetts is 20% (criminal usury).
6% default; 20% criminal usury cap. Demand notes are commonly used in Massachusetts for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Massachusetts: No specific period; reasonable demand required. The statute of limitations for collecting on a promissory note in Massachusetts is 6 years (oral and written), though the start date for demand notes can vary.
20% (criminal usury)
Usury rate cap
On Demand
No fixed maturity
6 years
Statute of limitations
30 Days
Recommended notice
Massachusetts Legal Requirements
Massachusetts has specific requirements for demand promissory notes:
Important: Massachusetts Usury & Demand Rules
Massachusetts's maximum interest rate is 20% (criminal usury). No specific 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 Massachusetts's 20% (criminal usury) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Massachusetts as the governing jurisdiction
Making a Demand in Massachusetts
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 Massachusetts 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, district, or superior court
Collection Procedures in Massachusetts
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Massachusetts.
| Aspect | Massachusetts Rule |
|---|---|
| Usury Rate | 20% (criminal usury) |
| Demand Notice | No specific period; reasonable demand required |
| Statute of Limitations | 6 years (oral and written) |
| Collection Procedure | Demand letter, suit in small claims, district, or superior court |
Sample Massachusetts Demand Promissory Note
Below is a preview of our Massachusetts-specific demand promissory note template.
STATE OF MASSACHUSETTS
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: [Massachusetts Address]
BORROWER:
Name: [Borrower Name]
Address: [Massachusetts Address]
TERMS
Interest: [Rate]% per annum (max 20% (criminal usury) in MA)
Payable within 30 days of written demand by Lender
Massachusetts Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Massachusetts.
Official Massachusetts Resources
Official resources for Massachusetts lending laws and court procedures.
Other Massachusetts Promissory Note Types
Need a different type of promissory note for Massachusetts?
Create Your Massachusetts Demand Promissory Note
Answer a few questions and download your Massachusetts-compliant demand note in minutes.
No account required. Free to create and preview.