New Mexico Demand Promissory Note Overview
A demand promissory note in New Mexico 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 New Mexico is 15%.
15% max for most loans. Demand notes are commonly used in New Mexico for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in New Mexico: No specific period; reasonable demand required. The statute of limitations for collecting on a promissory note in New Mexico is 4 years (oral), 6 years (written), though the start date for demand notes can vary.
15%
Usury rate cap
On Demand
No fixed maturity
4 years
Statute of limitations
30 Days
Recommended notice
New Mexico Legal Requirements
New Mexico has specific requirements for demand promissory notes:
Important: New Mexico Usury & Demand Rules
New Mexico's maximum interest rate is 15%. 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 New Mexico's 15% usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify New Mexico as the governing jurisdiction
Making a Demand in New Mexico
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 New Mexico 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 magistrate or district court
Collection Procedures in New Mexico
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in New Mexico.
| Aspect | New Mexico Rule |
|---|---|
| Usury Rate | 15% |
| Demand Notice | No specific period; reasonable demand required |
| Statute of Limitations | 4 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, suit in magistrate or district court |
Sample New Mexico Demand Promissory Note
Below is a preview of our New Mexico-specific demand promissory note template.
STATE OF NEW MEXICO
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: [New Mexico Address]
BORROWER:
Name: [Borrower Name]
Address: [New Mexico Address]
TERMS
Interest: [Rate]% per annum (max 15% in NM)
Payable within 30 days of written demand by Lender
New Mexico Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in New Mexico.
Official New Mexico Resources
Official resources for New Mexico lending laws and court procedures.
Other New Mexico Promissory Note Types
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