Promissory Note in Alabama
A written promise to repay a personal loan, with the amount, interest and payment schedule. States limit how much interest a lender can charge; check your state's rules below before you set the rate.
What Alabama law says
| Maximum interest rate (usury limit) | Without a written contract the maximum interest rate is $6 per $100 per year (6%); with a written contract the cap is $8 per $100 per year (8%), except as other law provides. For loans with an original principal of $2,000 or more, the parties may agree to any rate and the usury defense is not available, though unconscionability laws still apply. Source: Ala. Code §§ 8-8-1, 8-8-5 |
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| Time limit to sue on a written contract | 6 years for actions founded on promises in writing not under seal, such as a signed loan or credit agreement. Sealed instruments have a longer period (§ 6-2-33). Source: Ala. Code § 6-2-34(4) |
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PROMISSORY NOTE
Amount: $[principal amount] Date: [date] Place: [city, state]
For value received, [borrower name], of [borrower address] ("Borrower"), promises to pay [lender name], of [lender address] ("Lender"), the sum of $[principal amount], with interest at [rate]% per year.
Payments: [e.g. $[amount] per month starting [date] until paid in full / one payment of the full amount on [due date]].
Late payment: [late fee or 'none']. Prepayment: Borrower may prepay all or part at any time without penalty.
If Borrower misses a payment for [number] days, Lender may [declare the full balance due].
Borrower signature: ____________________ Date: [date]
[Co-signer signature, if any] [Notary acknowledgment, if you choose to use one]
Promissory Note for other states · Alabama tenant rights
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.