In the state of Oregon, promissory notes are legally binding agreements between a lender and a borrower. This document outlines the terms of the loan, including the amount borrowed, interest rate, and conditions of the contract.
In Oregon, promissory notes fall under the regulation of the Oregon Revised Statutes, Chapter 86.
Oregon recognizes both secured and unsecured promissory notes.
Oregon Secured Promissory Note
A secure promissory note is a legally binding agreement between two people, a lender and a borrower. Secured promissory notes require the borrower to provide something of the same value as the loan to secure the money.
The state of Oregon’s maximum interest rate can be no higher than 9% per annum, as dictated by the Oregon Revised Statutes Chapter 82.
You can find a free Oregon promissory note template online. It’s simple to fill out so anyone can do it without legal assistance. You’ll need to include:
- Personal information of both the lender and seller
- Balance of the note
- Interest rate
- Collateral offered as a security deposit
Oregon Unsecured Promissory Note
An unsecured promissory note puts the lender at risk because the borrower does not have to provide collateral to secure the loan. If the borrower decides to void the contract, it’s not easy for the lender to get their money back.
Unsecured loans are less formal and are common between family, friends, or between people with a high level of trust. The lender must take the matter to court for judgment within the statute of limitations to resolve a breached promissory note.
It should only take a few minutes to fill out an unsecured promissory note Oregon form. You’ll need the same information as the secured loan, except for the information regarding collateral.