Florida Unsecured Promissory Note Overview
An unsecured promissory note in Florida is a loan agreement where the borrower promises to repay without pledging any collateral. The lender relies on the borrower's creditworthiness and the legally enforceable promise to pay. The maximum interest rate in Florida is 18% (under $500K).
18% per annum for loans under $500,000; 25% for loans of $500,000 or more; criminal usury at 25%/45%. Unsecured notes carry more risk for the lender, so interest rates are typically higher than secured notes. However, the rate must still comply with Florida's usury laws.
If the borrower defaults, the lender's primary remedy is filing a lawsuit within Florida's statute of limitations (4 years (oral), 5 years (written)). The small claims court limit in Florida is $8,000, which is ideal for smaller unsecured loans.
18% (under $500K)
Usury rate cap
4 years
Statute of limitations
$8,000
Small claims limit
25%
Max garnishment
Florida Legal Requirements
Florida has specific requirements for unsecured promissory notes:
Important: Florida Usury Laws
Florida's maximum interest rate is 18% (under $500K). 18% per annum for loans under $500,000; 25% for loans of $500,000 or more; criminal usury at 25%/45%. Exceeding this limit may void the interest or result in penalties.
- Written Agreement: Must be in writing, signed by borrower, clearly stating loan terms
- Compliant Interest Rate: Must not exceed Florida's 18% (under $500K) usury cap
- No Collateral Statement: Explicitly state that the note is unsecured with no collateral pledged
- Default Provisions: Events of default, cure period, acceleration clause, and collection remedies
- Personal Guarantee: Recommended for business borrowers to protect the lender
- Governing Law: Specify Florida law as the governing jurisdiction
Collection Remedies in Florida
If a borrower defaults on an unsecured promissory note in Florida, the lender has several collection options:
Send a Formal Demand Letter
Written notice demanding payment within a specified timeframe, creating a paper trail
File in Small Claims Court ($8,000 limit)
Fast, affordable, no attorney required for amounts within the limit
File a Civil Lawsuit
For amounts above small claims limits, file in Florida civil court
Enforce the Judgment
Up to 25% of disposable earnings; head of household exemption. Bank account levies and property liens also available
Statute of Limitations in Florida
The statute of limitations for collecting on a promissory note in Florida is 4 years (oral), 5 years (written). After this period, the lender loses the right to file a lawsuit to enforce the note.
| Aspect | Florida Rule |
|---|---|
| Usury Rate | 18% (under $500K) |
| Statute of Limitations | 4 years (oral), 5 years (written) |
| Small Claims Limit | $8,000 |
| Garnishment Rules | Up to 25% of disposable earnings; head of household exemption |
Sample Florida Unsecured Promissory Note
Below is a preview of our Florida-specific unsecured promissory note template.
STATE OF FLORIDA
UNSECURED PROMISSORY NOTE
No Collateral Loan Agreement
LENDER:
Name: [Lender Name]
Address: [Florida Address]
BORROWER:
Name: [Borrower Name]
Address: [Florida Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 18% (under $500K) in FL)
This note is UNSECURED. No collateral has been pledged.
Florida Unsecured Promissory Note FAQ
Answers to common questions about unsecured promissory notes and collection procedures in Florida.
Official Florida Resources
Use these official resources for Florida lending laws and court procedures.
Other Florida Promissory Note Types
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