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