A Washington, DC promissory note records the details of a money-lending transaction between a lender and a borrower, outlining the terms of the loan. These include the borrowed amount, the interest rate, and the repayment schedule.
The document is legally enforceable, providing recourse for lenders in the event of borrower default. Compliance with local regulations ensures the validity of loan agreements and the protection of both parties.
Laws: Promissory notes are governed by general contract law principles outlined in Title 28 (Commercial Instruments and Transactions).
Statute of Limitations: Three years for most notes. Six years if the note contains an obligation to pay at a definite time (§ 28:3-118(a)).
By Type
Usury Laws and Interest Rates
Promissory notes must adhere to the state’s usury laws, as stipulated in Title 28, Chapter 33 of the Code of the District of Columbia.
- With a Contract (§ 28-3301(a)): Not to exceed 24% per annum.
- Without a Contract (§ 28-3302(a)): Not to exceed 6% per annum.
