Kansas Unsecured Promissory Note Overview
An unsecured promissory note in Kansas 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 Kansas is 15%.
15% per annum general cap; no limit for business loans. Unsecured notes carry more risk for the lender, so interest rates are typically higher than secured notes. However, the rate must still comply with Kansas's usury laws.
If the borrower defaults, the lender's primary remedy is filing a lawsuit within Kansas's statute of limitations (3 years (oral), 5 years (written)). The small claims court limit in Kansas is $4,000, which is ideal for smaller unsecured loans.
15%
Usury rate cap
3 years
Statute of limitations
$4,000
Small claims limit
25%
Max garnishment
Kansas Legal Requirements
Kansas has specific requirements for unsecured promissory notes:
Important: Kansas Usury Laws
Kansas's maximum interest rate is 15%. 15% per annum general cap; no limit for business loans. 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 Kansas's 15% 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 Kansas law as the governing jurisdiction
Collection Remedies in Kansas
If a borrower defaults on an unsecured promissory note in Kansas, 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 ($4,000 limit)
Fast, affordable, no attorney required for amounts within the limit
File a Civil Lawsuit
For amounts above small claims limits, file in Kansas civil court
Enforce the Judgment
Up to 25% of disposable earnings. Bank account levies and property liens also available
Statute of Limitations in Kansas
The statute of limitations for collecting on a promissory note in Kansas is 3 years (oral), 5 years (written). After this period, the lender loses the right to file a lawsuit to enforce the note.
| Aspect | Kansas Rule |
|---|---|
| Usury Rate | 15% |
| Statute of Limitations | 3 years (oral), 5 years (written) |
| Small Claims Limit | $4,000 |
| Garnishment Rules | Up to 25% of disposable earnings |
Sample Kansas Unsecured Promissory Note
Below is a preview of our Kansas-specific unsecured promissory note template.
STATE OF KANSAS
UNSECURED PROMISSORY NOTE
No Collateral Loan Agreement
LENDER:
Name: [Lender Name]
Address: [Kansas Address]
BORROWER:
Name: [Borrower Name]
Address: [Kansas Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 15% in KS)
This note is UNSECURED. No collateral has been pledged.
Kansas Unsecured Promissory Note FAQ
Answers to common questions about unsecured promissory notes and collection procedures in Kansas.
Official Kansas Resources
Use these official resources for Kansas lending laws and court procedures.
Other Kansas Promissory Note Types
Need a different type of promissory note for Kansas?
Create Your Kansas Unsecured Promissory Note
Answer a few questions and download your Kansas-compliant unsecured note in minutes.
No account required. Free to create and preview.