What Is a New Hampshire Promissory Note?
A New Hampshire promissory note is a document that ensures that a lender is repaid the borrowed amount plus interest by the borrower promptly. For this, both parties must agree on key details like payment methods, interest rates, penalties, and more. Furthermore, these notes are legally binding, requiring signatures from both parties.
Laws: Promissory notes fall under Title XXXI, Chapter 336 of the New Hampshire Revised Statutes.
Statute of Limitations: Six years (§382-A:3-118).
Types of New Hampshire Promissory Notes: Secured vs. Unsecured
Picking the right type of promissory note in New Hampshire helps clarify expectations and manage risk, especially when large sums or valuable property are involved.
Secured New Hampshire Promissory Note
Enables the lender to retain possession of a valuable asset should the borrower fail to meet the loan repayment conditions.
Unsecured New Hampshire Promissory Note
Typically available to individuals with strong credit or personal connections, this option does not necessitate the provision of collateral.
Usury Laws and Interest Rates in New Hampshire
The promissory note must adhere to New Hampshire’s usury laws as outlined in Chapter 336:
- With a Contract (§ 336:1): No limit, except for consumer credit transactions under (§358-K:1)
- Without a Contract (§ 336:1): 10%.
- For Judgments (§ 336:1): 2% higher than the interest discount rate on 26-week US Treasury bills.
Sample New Hampshire Promissory Note
View a free sample of a New Hampshire promissory note to learn what it looks like. Customize your own document using our editor and save the final version in PDF or Word format.
