Nebraska Unsecured Promissory Note Overview
An unsecured promissory note in Nebraska 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 Nebraska is 16%.
16% per annum maximum for most loans; higher rates for licensed installment lenders. Unsecured notes carry more risk for the lender, so interest rates are typically higher than secured notes. However, the rate must still comply with Nebraska's usury laws.
If the borrower defaults, the lender's primary remedy is filing a lawsuit within Nebraska's statute of limitations (4 years (oral), 5 years (written)). The small claims court limit in Nebraska is $3,900, which is ideal for smaller unsecured loans.
16%
Usury rate cap
4 years
Statute of limitations
$3,900
Small claims limit
25%
Max garnishment
Nebraska Legal Requirements
Nebraska has specific requirements for unsecured promissory notes:
Important: Nebraska Usury Laws
Nebraska's maximum interest rate is 16%. 16% per annum maximum for most loans; higher rates for licensed installment lenders. 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 Nebraska's 16% 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 Nebraska law as the governing jurisdiction
Collection Remedies in Nebraska
If a borrower defaults on an unsecured promissory note in Nebraska, 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 ($3,900 limit)
Fast, affordable, no attorney required for amounts within the limit
File a Civil Lawsuit
For amounts above small claims limits, file in Nebraska civil court
Enforce the Judgment
Up to 25% of disposable earnings; 15% for head of household. Bank account levies and property liens also available
Statute of Limitations in Nebraska
The statute of limitations for collecting on a promissory note in Nebraska is 4 years (oral), 5 years (written). After this period, the lender loses the right to file a lawsuit to enforce the note.
| Aspect | Nebraska Rule |
|---|---|
| Usury Rate | 16% |
| Statute of Limitations | 4 years (oral), 5 years (written) |
| Small Claims Limit | $3,900 |
| Garnishment Rules | Up to 25% of disposable earnings; 15% for head of household |
Sample Nebraska Unsecured Promissory Note
Below is a preview of our Nebraska-specific unsecured promissory note template.
STATE OF NEBRASKA
UNSECURED PROMISSORY NOTE
No Collateral Loan Agreement
LENDER:
Name: [Lender Name]
Address: [Nebraska Address]
BORROWER:
Name: [Borrower Name]
Address: [Nebraska Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 16% in NE)
This note is UNSECURED. No collateral has been pledged.
Nebraska Unsecured Promissory Note FAQ
Answers to common questions about unsecured promissory notes and collection procedures in Nebraska.
Official Nebraska Resources
Use these official resources for Nebraska lending laws and court procedures.
Other Nebraska Promissory Note Types
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