North Carolina Demand Promissory Note Overview
A demand promissory note in North Carolina 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 North Carolina is 8%.
8% general cap; 16% for loans under $25,000. Demand notes are commonly used in North Carolina for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in North Carolina: No specific statutory demand period. The statute of limitations for collecting on a promissory note in North Carolina is 3 years (oral), 6 years (written simple contracts), though the start date for demand notes can vary.
8%
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
North Carolina Legal Requirements
North Carolina has specific requirements for demand promissory notes:
Important: North Carolina Usury & Demand Rules
North Carolina's maximum interest rate is 8%. No specific statutory demand 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 North Carolina's 8% usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify North Carolina as the governing jurisdiction
Making a Demand in North Carolina
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 North Carolina 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 North Carolina
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in North Carolina.
| Aspect | North Carolina Rule |
|---|---|
| Usury Rate | 8% |
| Demand Notice | No specific statutory demand period |
| Statute of Limitations | 3 years (oral), 6 years (written simple contracts) |
| Collection Procedure | Demand letter, suit in small claims, district, or superior court |
Sample North Carolina Demand Promissory Note
Below is a preview of our North Carolina-specific demand promissory note template.
STATE OF NORTH CAROLINA
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: [North Carolina Address]
BORROWER:
Name: [Borrower Name]
Address: [North Carolina Address]
TERMS
Interest: [Rate]% per annum (max 8% in NC)
Payable within 30 days of written demand by Lender
North Carolina Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in North Carolina.
Official North Carolina Resources
Official resources for North Carolina lending laws and court procedures.
Other North Carolina Promissory Note Types
Need a different type of promissory note for North Carolina?
North Carolina Secured Promissory Note
Collateral-backed loan agreement
North Carolina Unsecured Promissory Note
No collateral required
General Promissory Note
Standard promissory note template
North Carolina Loan Agreement
Comprehensive loan documentation
North Carolina Bill of Sale
Document property transfers
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