North Dakota Promissory Note Templates

Home / Promissory Note Templates / North Dakota Promissory Note Templates

In North Dakota, a Promissory Note is a standard agreement between two parties, the lender— the person providing the loan—and the borrower, who is the person receiving the loan. These notes define the terms of the agreement, such as payoff amount with interest and penalty for failure of repayment.

Promissory notes fall under the regulation of the North Dakota Century Code and Title 41 of the Uniform Commercial Code, which outlines the legal use of promissory notes. 

North Dakota recognizes both secured and unsecured promissory notes.

North Dakota Secured Promissory Note

Secured promissory notes require the borrower to provide collateral in exchange for a loan. If the borrower fails with repayment, ownership of the collateral goes to the lender.

North Dakota promissory notes have a usury rate – the max interest rate – of 6% per annum, as outlined by North Dakota Century Code Chapter 47-14-09.

Secured promissory notes are easy to fill out. You can download a free promissory note template North Dakota right off the internet. You will need to include:

  • Date of contract
  • Personal information of lender and borrower
  • Loan amount
  • Interest rate
  • Payment (number of payments, due date, price)
  • Late fees
  • Collateral offered if the contract is forfeited
  • Signatures

North Dakota Unsecured Promissory Note

Unsecured promissory notes don’t require the borrower to offer any collateral to obtain the loan. The Lender and the Borrower work out the agreements of the loan based on good faith.

Using an unsecured promissory note puts the lender at a higher risk of ending up with the short end of the stick in regards to a Borrower failing with repayment. You typically see these types of loans used between family members or friends who know each other. If a borrower defaults on an unsecured promissory note, the lender will have to take the case to Small Claims Court to recover their losses.

Writing an unsecured promissory note is as easy as downloading a free North Dakota promissory note form from the internet. You should be able to complete a promissory note North Dakota form in under ten minutes as long as you have all the information ready.

Frequently Asked Questions

In North Dakota, a promissory note has a statute of limitations of six years. If the contract is broken within that time frame, the lender has the right to get a judgment passed in their favor. However, if the lender waits longer than six years to take action, the promissory note is void.

To enforce a secured promissory note, a Lender must contact the borrower to request the delivery of the agreed-upon security deposit. This contact can be done by the borrower, or by hiring an agency or lawyer. Many people prefer to try and handle the situation themselves before getting outside players involved, as that would typically cost money.

To attempt collection on an unsecured promissory note, the lender will need to file a petition in court. If a judge considers your case to be creditable, they will issue a judgment on your behalf, requiring the borrower to settle their debt. If the court dismisses your case, there is nothing you will be able to do legally to recoup the losses.