Promissory Note in Maryland
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 Maryland law says
| Maximum interest rate (usury limit) | Unless another law allows more, a person may not charge interest above an effective simple rate of 6% a year on a loan (Commercial Law §12-102). A lender may charge up to 8% a year if there is a written agreement signed by the borrower stating the rate, with higher limits for certain secured or unsecured loans that meet extra conditions in §12-103. |
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| Time limit to sue on a written contract | 3 years for a civil action on a contract, written or oral. 12 years for a contract under seal (a 'specialty'), but the 12-year period does not apply to hospital debt owed by a consumer. § 5-102: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcj§ion=5-102&enactments=false |
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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 · Maryland 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.