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)).
Types of Washington, DC Promissory Notes
In Washington, DC, promissory notes may be secured with collateral or remain unsecured, depending on the terms agreed upon by both parties.
Secured
Binds the borrower to repay a loan by providing collateral which the lender can claim if the borrower defaults.
Unsecured
A legally binding commitment to repay the loan which doesn't rely on collateral, making it suitable for less substantial needs.
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.
Sample Washington, DC Promissory Note
Below, you can see what a Washington, DC promissory note looks like. You can customize this template using our document editor and then download in PDF or Word format.
