Florida Promissory Note Template

A Florida Promissory Note is a written promise to repay money to someone. It is often used for personal or business loans, or other private lending arrangements.

This legal document helps both parties keep a clear record of the loan. It usually includes the:

• Loan amount
• Repayment terms
• Interest rate
• Due date
• Signatures

Types of Promissory Note Used in Florida

A Promissory Note can be secured or unsecured.

A secured note is backed by collateral, such as a vehicle or other property.

An unsecured note is not backed by collateral, so the lender relies on the borrower's promise to pay.

An unsecured, simple Promissory Note can still be useful if it clearly explains the agreement. The most important point is that both parties understand the payment terms before signing.

Below is an example of a Promissory Note for Florida. You can use it as a guide when drafting your own version of this document.

While Florida does not have specific Promissory Note requirements set in law, the following elements are generally required in the document in the state:

Florida law limits the amount of interest that can be charged on many loans. Before signing a Promissory Note, review these rules:

• Florida Statutes § 687.03, Unlawful Rates of Interest: Charging more than 18% simple interest per year may be considered usury, unless an exception applies. This rule can also apply to charges added indirectly through commissions, discounts, or other devices.
• Florida Statutes § 687.071, Criminal Usury and Loan Sharking: For certain loans, charging more than 25% interest per year may be a criminal offense if done willfully and knowingly. Charging more than 45% may lead to more serious penalties.
• Florida Statutes § 687.04, Penalty for Usury: A lender who willfully charges unlawful interest may lose the right to collect that interest. In some cases, only the principal amount may be enforceable.
• Florida Statutes § 201.08, Documentary Stamp Tax: Florida may require documentary stamp tax on Promissory Notes and other written promises to pay money. The tax is generally 35 cents for each $100, or part of $100, of the debt.

The Florida statute of limitations for a Promissory Note is the time limit for bringing a legal claim.

In many cases, a claim based on a written agreement must be filed within five years.

However, the exact deadline can depend on:

• The note's due date
• Payment schedule
• Whether the balance was accelerated

A clear repayment schedule makes the note easier to understand and may help avoid disputes later.

If you are creating a Promissory Note, other financial documents may also help you in the future:

• Loan Agreement
• IOU
• Demand Letter
• Debt Validation Letter