Maryland Promissory Note Templates

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A Maryland promissory note is a type of loan agreement between a borrower and a lender. There might also be a co-signer who can be a third party to a promissory note.

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

In this agreement, the lender gives the borrower a loan and the borrower and co-signer — if there is one — acknowledge the terms and agree to repay the loan.

In the state of Maryland, there’s a legal interest rate (also known as a usury rate) of 6%, according to the state legislature.

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

Maryland Secured Promissory Note

One version of a Maryland promissory note is referred to as a secured promissory note. It’s described as “secured” because the lender has more security with this type of agreement. Both parties — the lender and the borrower — agree on collateral that will be given to the lender if the borrower can’t repay the former. For example, a boat could be used as security.

Maryland Secured Promissory Note - Templates.Legal
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Maryland Unsecured Promissory Note

A free Maryland promissory note that’s unsecured puts the lender at risk of losing money because there’s no collateral offered. Lenders in this position should make sure the borrower has good credit. It also might be best to only use unsecured promissory note Maryland forms with trusted friends or family members.

Maryland Unsecured Promissory Note - Templates.Legal
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A promissory note template for Maryland contains lots of important information. For example, this written agreement will include things like:

  • The agreement date
  • Who the borrower and lender are
  • Payments and installments as well as the payment method
  • Signatures

FAQ

Yes. However, there can be pitfalls to lending money to friends or family members. It’s always best for the lender to protect themselves as best they can, ideally through a legally binding agreement.

It’s always useful to have some collateral, such as through a secured promissory note, but if the lender chooses to pursue an unsecured agreement, they aren’t completely helpless. If the borrower has issues repaying the loan, the lender can always turn to the court and other legal remedies if need be.

A demand note is a type of promissory note that doesn’t have a specific timetable for repayment of the loan. Instead, this agreement requires full payment of the loan when the lender demands it.

Not exactly. Promissory notes have been at the heart of scams and fraud all over the United States. Even if the promissory note is legitimate, there are still certain risks associated with these types of agreements.

Borrowers can try to shirk the agreement if they’ve made bad decisions or if there the economy isn’t flourishing. Unsecured promissory notes have more risk associated with them.

An acceleration clause is a condition that allows the lender to claim reimbursement for the loan in full if the other party breaks the agreement in any way.