A Pennsylvania promissory note is a formal, legally binding document where a borrower pledges to repay a lender a specified sum of money by a certain date. This template outlines the repayment schedule, interest rate, potential collateral, and consequences for late or missed payments.
It is more detailed than an IOU but offers more flexibility than a standard loan agreement. Additionally, borrowers can sue for triple the excess if charged interest beyond the state’s legal limit.
Laws: Promissory notes fall under Pennsylvania Statutes Title 41 – Loan Interest and Protection Law (Usury Law).
Statute of Limitations: Four years.
By Type
Usury Laws and Interest Rates
The promissory note must adhere to Pennsylvania’s usury laws as outlined in Title 41:
- With Contract (41 Pa. Stat. § 201): No limit specified.
- For Loans of $50,000 or less (41 Pa. Stat. § 201): 6%, or as specified in the agreement.
- For Monetary Judgments (42 Pa. C.S. § 8101): 6% from the verdict date unless otherwise agreed by both parties.
