An Oregon promissory note is a legal document co-signed by a lender and borrower outlining the terms of a loan, including repayment schedule, interest rate, and collateral status (secured or unsecured). It specifies the amount borrowed, interest, late fees, and payment allocation.
Laws: Promissory notes fall under Chapter 82: Interest; Repayment Restrictions.
Statute of Limitations: Six years (ORS 73.0118).
By Type
Usury Laws and Interest Rates
The promissory note must adhere to Oregon’s usury laws as outlined in Chapter 82 of the Oregon Revised Statutes:
- With Contract (ORS 82.010(1)): No limit specified. Depending on the rate agreed upon.
- Without Contract (ORS 82.010(1)): 9%.
- Loans of $50,000 or less (ORS 82.010(3)(a)): 12% or 5% above the 90-day commercial paper discount rate at the Federal Reserve Bank, whichever is higher.
- For Monetary Judgments (ORS 82.010(2)): 9% or the contract rate of the note. For judgments involving medical and nursing malpractice, the maximum annual rate of interest is the lesser of 5% or 3% above the Federal Reserve Bank rate in the district where the injuries occurred.
- For Agreements Allowing Early Repayment: Language must comply with ORS § 82.160 or ORS § 82.170 and be incorporated.
