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.
By Type
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 O.S. § 727(B)): 10%.
