Promissory Note in Montana

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 Montana law says

Maximum interest rate (usury limit)	Parties may agree in writing to any interest rate that does not exceed the greater of 15% a year or 6 percentage points above the bank prime rate published by the Federal Reserve (H.15) three business days before the agreement. When no rate is set in a written contract, the legal rate is 10% a year after money becomes due. Charging more than allowed forfeits double the interest; a borrower who paid it may sue within 2 years after written demand. Regulated lenders (other than deferred deposit and consumer loan licensees) are exempt from the cap (§§ 31-1-107(3), 31-1-112). A loan that was not usurious when made stays lawful unless substantially changed. Source: Mont. Code Ann. §§ 31-1-106, 31-1-107, 31-1-108
Time limit to sue on a written contract	6 years for an action on a contract or obligation founded on a written instrument. The written-contract period was previously 8 years; it was changed by 2023 and 2025 amendments. Source: Mont. Code Ann. § 27-2-202(1)

Maximum interest rate (usury limit)

Parties may agree in writing to any interest rate that does not exceed the greater of 15% a year or 6 percentage points above the bank prime rate published by the Federal Reserve (H.15) three business days before the agreement. When no rate is set in a written contract, the legal rate is 10% a year after money becomes due. Charging more than allowed forfeits double the interest; a borrower who paid it may sue within 2 years after written demand.

Regulated lenders (other than deferred deposit and consumer loan licensees) are exempt from the cap (§§ 31-1-107(3), 31-1-112). A loan that was not usurious when made stays lawful unless substantially changed.

Source: Mont. Code Ann. §§ 31-1-106, 31-1-107, 31-1-108

Time limit to sue on a written contract

6 years for an action on a contract or obligation founded on a written instrument.

The written-contract period was previously 8 years; it was changed by 2023 and 2025 amendments.

Source: Mont. Code Ann. § 27-2-202(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 · Montana 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.