A Kansas promissory note is a legally binding document that serves as a written promise to repay a loaned amount to a lender. It outlines the terms and conditions of the loan, including the principal amount, interest rate, payment schedule, and due date. Selecting a legal interest rate (usury rate) when creating a promissory note to protect the lender and the borrower is crucial.
Non-compliance with the terms of the note may result in the loss of any assets used to secure the loan, payment demands from debt collectors, and potential legal action taken by the lender.
Laws: 2006 Kansas Code – Chapter 16 governs the creation and implementation of promissory notes.
Statute of Limitations: Five years. (§ 60-511)
By Type
Usury Laws and Interest Rates
Promissory notes must comply with Kansas’s usury laws, which you can find in Ch. 16, Article 2:
- Without a Contract (§ 16-201): 10% per annum
- With a Contract (§ 16-207(a)): Not to exceed 15% per annum, unless a higher interest rate is authorized by § 16-207(e) et seq.
- For Judgments (§ 16-204(e)(1)): 4% above the federal discount rate.
- For Judgments on Contract (§ 16-205(a)): The contract rate applies but cannot exceed the rate allowed by law.
