Washington Demand Promissory Note Overview
A demand promissory note in Washington 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 Washington is 12%.
12% max or 4% above 26-week T-bill rate. Demand notes are commonly used in Washington for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Washington: No specific period; reasonable demand required. The statute of limitations for collecting on a promissory note in Washington is 3 years (oral), 6 years (written), though the start date for demand notes can vary.
12%
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
Washington Legal Requirements
Washington has specific requirements for demand promissory notes:
Important: Washington Usury & Demand Rules
Washington's maximum interest rate is 12%. 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 Washington's 12% usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Washington as the governing jurisdiction
Making a Demand in Washington
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 Washington 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 Washington
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Washington.
| Aspect | Washington Rule |
|---|---|
| Usury Rate | 12% |
| Demand Notice | No specific period; reasonable demand required |
| Statute of Limitations | 3 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, suit in small claims, district, or superior court |
Sample Washington Demand Promissory Note
Below is a preview of our Washington-specific demand promissory note template.
STATE OF WASHINGTON
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: [Washington Address]
BORROWER:
Name: [Borrower Name]
Address: [Washington Address]
TERMS
Interest: [Rate]% per annum (max 12% in WA)
Payable within 30 days of written demand by Lender
Washington Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Washington.
Official Washington Resources
Official resources for Washington lending laws and court procedures.
Other Washington Promissory Note Types
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