Montana Promissory Note Templates

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A promissory note allows two parties that agree to a loan to record the exact amount of the loan, when the transaction occurred, and when the lender should receive repayment plus interest. These types of notes remove any confusion from the loaning process, and it can stipulate what asset the borrower would forfeit if they can’t pay.

A Montana promissory note usury rate, or interest rate, is 10% yearly. However, interest rates can go up to 15% per year, according to Montana Code § 31-1-107.

Below are the two types of Montana promissory notes, followed by frequently asked questions.

Montana Secured Promissory Note

A secured Montana promissory note means that the lender will always be guaranteed repayment, whether financial or through one of the borrower’s assets. A promissory note template Montana will have information about which assets the borrower wants to use as a security, should they be unable to pay the loan back.

There are many ways to get a free Montana promissory note. A promissory note Montana form will require the following information:

  • The day, month, and year in which the agreement takes place
  • Borrower’s full name
  • Borrower’s address
  • Lender’s full name
  • Lender’s full address
  • Amount loaned
  • Interest rate
  • Which of the borrower’s assets will be used as collateral
  • Signatures of all parties, usually including a notary public

Montana Unsecured Promissory Note

The borrower and lender will have to fill out the same information on the form. Filling out an unsecured promissory note is a quick and easy process that cements an agreement between the two parties.

 Because there’s no security, these types of loans are often riskier for the lender. Unsecured notes are more common between friends and family members.

Since unsecured promissory notes are still legally binding documents, the lender can use them in a small claims court to urge the borrower to repay the amount owed.


In a Montana promissory note, the borrower is the person receiving money from the lender.

The lender is the person who gives money to the borrower. The lender may receive one of the borrower’s assets should the borrower be unable to pay back the loan if both parties agree to sign a secured note.

The principal amount is another way of referring to the amount the borrower received from the lender.

No, lenders do not have to charge interest. However, interest is a tool that encourages the borrower to pay the money back without the timeframe you agreed upon.

Typically, the types of payments can be:

  • Specific periodic amounts. The borrower incrementally pays the lender without any interest.
  • Lump sum. The borrower pays the lender back all at once at the end of the loan term or by the loan’s deadline.
  • Interest-only. The borrower pays what would cover the interest without also paying for the amount they originally borrowed.
  • Interest and principal. The borrower pays back portions of what they originally borrowed and also the interest.