Mississippi Demand Promissory Note Overview
A demand promissory note in Mississippi 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 Mississippi is 10% (contract rate).
8% legal; 10% max contract rate. Demand notes are commonly used in Mississippi for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Mississippi: Demand must be clear; no specific period. The statute of limitations for collecting on a promissory note in Mississippi is 3 years (oral), 6 years (written), though the start date for demand notes can vary.
10% (contract rate)
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
Mississippi Legal Requirements
Mississippi has specific requirements for demand promissory notes:
Important: Mississippi Usury & Demand Rules
Mississippi's maximum interest rate is 10% (contract rate). Demand must be clear; no specific 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 Mississippi's 10% (contract rate) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Mississippi as the governing jurisdiction
Making a Demand in Mississippi
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 Mississippi 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 justice or circuit court
Collection Procedures in Mississippi
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Mississippi.
| Aspect | Mississippi Rule |
|---|---|
| Usury Rate | 10% (contract rate) |
| Demand Notice | Demand must be clear; no specific period |
| Statute of Limitations | 3 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, suit in justice or circuit court |
Sample Mississippi Demand Promissory Note
Below is a preview of our Mississippi-specific demand promissory note template.
STATE OF MISSISSIPPI
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: [Mississippi Address]
BORROWER:
Name: [Borrower Name]
Address: [Mississippi Address]
TERMS
Interest: [Rate]% per annum (max 10% (contract rate) in MS)
Payable within 30 days of written demand by Lender
Mississippi Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Mississippi.
Official Mississippi Resources
Official resources for Mississippi lending laws and court procedures.
Other Mississippi Promissory Note Types
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