An Oklahoma promissory note is a formal signed agreement where a borrower commits to repaying a specified sum to a lender, detailing both parties’ information, the amount lent, the interest rate based on Oklahoma’s Usury Rate, and the payment schedule.
It surpasses an “IOU” in formality and offers more flexibility than standard loans, facilitating non-institutional funding options. It includes terms for interest payments and provisions for default, safeguarding the lender’s interests according to Oklahoma law.
Laws: Promissory notes fall under the Oklahoma Statutes Chapter 6 – Loans of Money.
Statute of Limitations: Six years (§12A-3-118).
Types of Oklahoma Promissory Notes
In Oklahoma, your loan’s success may depend on how you structure it. Picking the right promissory note for your situation, either a secured or unsecured note, ensures a smoother experience.
Secured
Ensures collateral is provided in advance to safeguard the lender if the borrower fails to repay.
Unsecured
Removes the requirement for borrowers to provide collateral to lenders.
Usury Laws and Interest Rates
The promissory note must adhere to Oklahoma’s usury laws as outlined in Chapter 6:
- With Contract (§ 266): Parties can decide on any interest rate.
- Without Contract (§ 266): 6%.
- For Monetary Judgments (12 OS § 727(B)): Cannot exceed 10% per annum; actual amount certified yearly by the Administrative Director of the Courts based on the previous year’s Treasury Bill Yield average rate.
Sample Oklahoma Promissory Note
View a free example of an Oklahoma promissory note to learn its format. Then, create your own using our document editor and download it in PDF or Word format.
