Promissory Note in Tennessee

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 Tennessee law says

Maximum interest rate (usury limit)	For a written contract signed by the borrower, the maximum is the 'applicable formula rate': four percentage points above the average prime loan rate, but never more than 24% a year. For other transactions not covered by a specific statute, the maximum is 10% a year. Other statutes set different limits for specific kinds of lenders and loans. Read on codes.findlaw.com (a public copy of the official code); check against the official code. The page says it is current as of January 2, 2024. The formula rate is published periodically in the Tennessee Administrative Register. This entry does not state a separate legal rate for when a note names no rate. Source: Tenn. Code Ann. §§ 47-14-103, 47-14-102(3), (7)
Time limit to sue on a written contract	6 years for actions on contracts not otherwise provided for. The same period applies to written and oral contracts. Tennessee's official code is published only through LexisNexis; text read on a public mirror (FindLaw). Source: T.C.A. 28-3-109(a)(3)

Maximum interest rate (usury limit)

For a written contract signed by the borrower, the maximum is the 'applicable formula rate': four percentage points above the average prime loan rate, but never more than 24% a year. For other transactions not covered by a specific statute, the maximum is 10% a year. Other statutes set different limits for specific kinds of lenders and loans.

Read on codes.findlaw.com (a public copy of the official code); check against the official code. The page says it is current as of January 2, 2024. The formula rate is published periodically in the Tennessee Administrative Register. This entry does not state a separate legal rate for when a note names no rate.

Source: Tenn. Code Ann. §§ 47-14-103, 47-14-102(3), (7)

Time limit to sue on a written contract

6 years for actions on contracts not otherwise provided for. The same period applies to written and oral contracts.

Tennessee's official code is published only through LexisNexis; text read on a public mirror (FindLaw).

Source: T.C.A. 28-3-109(a)(3)

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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 · Tennessee 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.