Maine Promissory Note Templates

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A Maine promissory note isn’t uncommon. It’s a written formal “promise” between two parties. This includes the borrower, who borrows money, and the lender, who lends a loaned amount of money to the former. In this agreement, the borrower agrees to pay the monetary balance, including the accrued interest.

Contents hide
1 Maine Secured Promissory Note
2 Maine Unsecured Promissory Note
3 FAQ

These promissory notes are useful for both the lender and borrower as they explicitly state expectations throughout the borrowing time period while emphasizing a repayment plan of sorts.

In the state of Maine, there’s a usury rate (or legal interest rate) of 6%, according to the state’s legislature.

There are two types of Maine promissory notes: secured or unsecured.

Maine Secured Promissory Note

With a secured promissory note, the two parties choose and agree on items to use as collateral in case the borrower evades repayment. Collateral can mean lots of things, but in this case, typical items can include vehicles and homes.

Maine Secured Promissory Note - Templates.Legal
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A promissory note template for Maine contains lots of valuable information. For example, this written agreement should have:

  • The date
  • Who the parties are
  • The amount loaned, including the interest rate
  • The payment plan or arrangement
  • Collateral
  • And necessary clauses and conditions

Maine Unsecured Promissory Note

A free Maine promissory note that’s unsecured is just that — unsecured. These don’t include any type of security or collateral. As a result, the lender might find himself at a higher risk of losing the loaned amount of money.

Maine Unsecured Promissory Note - Templates.Legal
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In this case, lenders should make sure the borrower in question has a history of good credit. People who choose to go with unsecured promissory note Maine forms are usually lifelong friends or family members.

FAQ

Yes. For example, promissory notes that relate to a health-care-insurance receivable or general intangible that restricts or requires the borrower to the transfer of a security interest is ineffective if the terms impair the creation of a security interest or may lead to a default, breach or right of termination.

A promissory note usually requires the borrower and a co-signer, if needed, to sign the written agreement. The signatures are required and seen as a written acknowledgment of the promissory note’s terms and conditions. The signatures also symbolize a promise of repayment.

A severability clause makes sure the agreement stays valid even if one part is tossed out due to legality issues.

The maximum amount of interest that can be charged in the state of Maine is 6% per year. If a lender charges more than 6% annually, they can potentially face legal consequences.

Yes. For example, if it’s a secured promissory note, it should be titled something like “Secured Maine Promissory Note.” The reason for titling these notes is due to legal disputes. If it’s not titled, the note could potentially be treated as an unsecured promissory note.