Promissory Note in Michigan
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 Michigan law says
| Maximum interest rate (usury limit) | The legal rate of interest is 5% a year. Parties may agree in writing to a higher rate, but not more than 7% a year, subject to exceptions for debts whose rates are regulated by other state or federal law (MCL 438.31). Knowingly charging interest above 25% a year when not authorized by law is criminal usury, punishable by up to 5 years in prison and/or a fine of up to $10,000 (MCL 438.41). Source: MCL 438.31; MCL 438.41 |
|---|---|
| Time limit to sue on a written contract | 6 years to sue for breach of contract, written or oral. Source: MCL 600.5807(1), (9) |
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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 · Michigan 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.