A Nevada promissory note is a document that formalizes the loan process by documenting the borrower’s commitment to repay the loaned amount plus interest by a set date, with signatures from all parties and a witness for legal validation.
Although less detailed than a loan agreement and seldom used by banks, it legally binds the borrower, allowing the lender to sue if repayment terms are breached, and may include co-signers or collateral for added security.
Laws: Promissory notes fall under Nevada Revised Statutes Chapter 99.
Statute of Limitations: Three years.
By Type
Usury Laws and Interest Rates
The promissory note must adhere to Nevada’s usury laws as outlined in Chapter 99:
- With a Contract (§ 99.050): Unlimited, but cannot exceed 36% or the lowest annual rate for consumer credit to service members or dependents.
- Without a Contract (§ 99.040): Prime rate plus 2% at Nevada’s largest bank.
- For Judgments (§ 17.130(2)): Prime rate plus 2% at Nevada’s largest bank if no rate is specified by contract or law.
- For Pawnbrokers (§ 646.050): Monthly rate of 13%.
