Pennsylvania Promissory Note Templates

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Lenders and borrowers in the Keystone State can use a Pennsylvania promissory note as a written contract between them. The note becomes the document that shows the details of the loan and repayment agreement. A promissory note can be secured or unsecured.

The Pennsylvania promissory note gives the lender tools for legal action if the borrower defaults on the loan.

Pennsylvania Secured Promissory Note

When signing a secured promissory note, the borrower agrees to put collateral toward the loan. This is to cover the loan if the borrower defaults on the agreement.

When you need to record a promissory note in Pennsylvania, you need a free Pennsylvania promissory note form. The form needs to include several features:

  • Term and interest
  • Collateral
  • Conditions of the loan
  • Fee and default information
  • Amendments
  • Signatures of lender and borrower
  • Signature of witness

Pennsylvania Unsecured Promissory Note

An unsecured promissory note is an agreement that does not include collateral. This could be an agreement between a lender who deems the borrower to have good credit.If the note is unsecured, the first step is to file a legal petition in the courts. Once you get a judgment, you can hire a collection agency to pursue the borrower.

Unfortunately, getting a court judgment in your favor does not guarantee you will receive payment from the borrower.


A Pennsylvania promissory note is valid for four years, which means the lender has four years to file a suit if a debtor defaults on the loan. After four years, the lender cannot pursue legal action to recoup money from the borrower. The four years begins the day the borrower misses the payment due date.

Lenders can go to court to get a judgment to collect on the default loan. If the Pennsylvania promissory note is collateralized, then the recourse is to collect the assets.

When you need to record a promissory note in Pennsylvania, you need a free Pennsylvania promissory note form with all of the empty spaces completed.

If you are the lender on a promissory note template Pennsylvania, you might have to pay taxes on the interest you receive. You should receive a 1099 tax form regarding the interest.

The money you receive is considered income, and the amount of tax you pay is 3.07% based on the amount you collect and other factors. Your tax preparer can help you understand what to expect.

If you have to collect from a promissory note Pennsylvania, your best choice is to bring your defaulted note to a court. Once the judge rules in your favor on your promissory note Pennsylvania form, you can begin recuperating your loss.

After receiving the judgment, you can hire a collection agency, or you can repossess the collateral. You might be able to reclaim the collateral yourself if you can do it peacefully. If the borrower does not let you, you will have to hire someone else.

The promissory note Pennsylvania form should have a notary stamp to be considered official. The notary cost can be factored into the promissory note, or it can be paid for directly by the borrower.