A Wisconsin promissory note is a formal agreement facilitating the lending process between two parties (a borrower and a lender). It details the terms under which the borrower is borrowing and repaying the agreed-upon amount, promoting clarity and a mutual understanding between the two parties.
This document contains essential loan details, including the initial amount, the relevant interest rate, repayment information, and repercussions for delinquent payments. It’s ideal for individuals who know each other well, as they can write it without needing a loan officer to create the arrangement.
Laws: Wis. Stat. § 67.12 covers promissory notes.
Statute of Limitations: Six years (Wis. Stat. §893.43(1); Bank of New York Mellon v. Klomstein, 2018 WI App 25).
By Type
Usury Laws and Interest Rates
The state’s usury laws are present in Chapter 138 (Money and Rates of Interest) of the Wisconsin Statutes, and you must abide by them when writing a promissory note.
- Without a Contract (§ 138.04): 5%.
- With a Contract (§ 138.05(1)(a)): 12%.
- For Loans Over $3,000 by Licensees (§ 138.09(7)(bn)(2)): 21%, 6% over the 2-year U.S. treasury note rate, or 6% over the 6-month treasury bill rate, whichever is greater. This regulation only applies to contracts entered between November 1, 1981, and November 1, 1984.
- For Loans Under $3,000 by Licensees (§ 138.09(7)(bn)(1)): 23%, 6% over the 2-year U.S. treasury note rate, or 6% over the 6-month treasury bill rate, whichever is greater. This regulation only applies to contracts entered between November 1, 1981, and November 1, 1984.
- Pawnbrokers (§ 138.10(2)(4)): Loans may not exceed 3% per month; there is a maximum of $150.
- For Payday Loans After the Maturity Date (§ 138.14(10)(a)): 2.75% per month.
- For Payday Loans Before the Maturity Date (§ 138.14(10)(a)): No limit.
