Delaware Promissory Note Templates

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ADelaware promissory note is a written agreement that memorializes the details of a loan between two parties: the lender and the borrower. It is a legally binding document that helps ensure that the balance is repaid on time.

The promissory note Delaware form requires certain information to validate the loan, such as the names and addresses of the parties, date of creation, principal loan amount, interest rates, and payment information. Other clauses may be added, such as prepayment, acceleration, payment allocation, severability, and notice.

Because they are contracts, promissory notes are subject to Delaware laws. There are two types of promissory notes: secured and unsecured.

Delaware Secured Promissory Note

A secured promissory note is one of the more common loan types, as it offers the lender the highest guarantee for repayment.

To enter into a secured loan, the borrower must offer some form of agreed-upon collateral. Items of value, such as boats, cars, and homes, are typical examples of insurance. Should the borrower default on the loan, the lender is legally entitled to take possession of the collateral to compensate for the nonpayment.

When filling out a secured promissory note, in addition to the information listed above, it’s critical to include details about the collateral securing the loan. If this information is left out, the lender may have difficulty collecting it if needed. A court may decide that an improperly drafted secured promissory note is actually unsecured.

Delaware Unsecured Promissory Note

An unsecured promissory note is one in which the borrower is not required to offer collateral to enter into the loan agreement. As such, the lender is not guaranteed repayment should the borrower default. They have to file a lawsuit if they want to recover their money, which does not always have a favorable outcome.

A great deal of trust between the parties is necessary for this type of loan. Family members and close friends often choose unsecured promissory notes to memorialize unsecured promissory loans. Individuals with excellent credit or high net worth may also qualify for this type of loan.


To record a promissory note in Delaware, all the pertinent information must be included in the document. Once the parties are satisfied that all requirements have been met, they must each sign and date the agreement.

In Delaware, there is no legal obligation that the promissory note have witnesses or be notarized. However, in the case of secured promissory notes, it may later help prove the document’s validity to have taken these steps.

Lenders must be aware of the usury laws in Delaware, which dictate the maximum interest that may be charged on promissory loans. According to6 Del.C. § 2301(a), lenders may not charge more than 5% over the Federal Reserve discount rate (including surcharges).