Promissory Note in Massachusetts

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 Massachusetts law says

Maximum interest rate (usury limit)	If there is no agreement or law setting a different rate, interest is 6% a year; parties may generally contract for any rate, but a rate above 6% can be recovered in a lawsuit only if the agreement is in writing (G.L. c. 107, §3). Knowingly charging interest and expenses totaling more than 20% a year on a loan is criminal usury, punishable by up to 10 years in prison or a $10,000 fine, and the loan may be declared void, unless the lender has notified the Attorney General and keeps the required records (G.L. c. 271, §49). Source: G.L. c. 107, §3; G.L. c. 271, §49
Time limit to sue on a written contract	6 years for contract actions, express or implied, written or oral. 20 years for contracts under seal. § 1: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleV/Chapter260/Section1 Source: M.G.L. c. 260, § 2; c. 260, § 1

Maximum interest rate (usury limit)

If there is no agreement or law setting a different rate, interest is 6% a year; parties may generally contract for any rate, but a rate above 6% can be recovered in a lawsuit only if the agreement is in writing (G.L. c. 107, §3). Knowingly charging interest and expenses totaling more than 20% a year on a loan is criminal usury, punishable by up to 10 years in prison or a $10,000 fine, and the loan may be declared void, unless the lender has notified the Attorney General and keeps the required records (G.L. c. 271, §49).

Source: G.L. c. 107, §3; G.L. c. 271, §49

Time limit to sue on a written contract

6 years for contract actions, express or implied, written or oral. 20 years for contracts under seal.

§ 1: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleV/Chapter260/Section1

Source: M.G.L. c. 260, § 2; c. 260, § 1

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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 · Massachusetts 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.