A Montana promissory note is a formal agreement for the loan of money between two parties. It details key aspects of the loan, including the interest rate, penalties for late payments, and the repayment method the borrower must follow.
It’s strongly advised that once all terms are mutually agreed upon, the signatures of both parties should be verified by a witness to ensure the agreement’s validity.
By Type
Usury Laws and Interest Rates
The promissory note must adhere to Montana’s usury laws as outlined in Title 31, Chapter 1, Part 1:
- With a Contract (§ 31-1-107): 15% or 6% + federal funds rate three days before the agreement or as specified, this excludes rates for lenders under § 31-1-111.
- Without a Contract (§ 31-1-106): Legal interest rate of 10%.
- For judgments (§ 25-9-205): The interest rate for bank prime loans plus 3% unless specified differently in a contract.
- For Unlicensed Pawnbrokers (§ 31-1-401): 10%
