Rhode Island Promissory Note Templates

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In the Ocean State, borrowers and lenders can sign a Rhode Island promissory note to create a legal contract. It can be secured or unsecured, and the promissory note Rhode Island form details the term and interest.

The Rhode Island promissory note also provides the lender with the legal document needed to seek recourse if the borrower stops making payments on the agreement.

Rhode Island Secured Promissory Note

When a promissory note is secured, the agreement includes the borrower offering collateral to the lender to back up the loan.

When you are recording a promissory note template Rhode Island, you must have precise details completed. These help make the document legal. Regarding the loan, the note should include details about:

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

Rhode Island Unsecured Promissory Note

An unsecured Rhode Island promissory note does not include collateral. The note could be one between friends or between a lender and a borrower with reliable credit.

When a borrower stops making payments on a promissory note, the lender can go to court to attempt to recoup losses. Lenders should know that a judgment in their favor does not guarantee the borrower will pay. Some lenders might be able to garnish wages, especially if the loan is unsecured.


The free Rhode Island promissory note is valid for ten years. After the tenth year of not paying on a promissory note, the Rhode Island lender can no longer file a suit against the borrower.

Rhode Island residents are protected from creditor threats after the ten years have passed. Day one of the ten-year statute of limitations begins on the day the first missed payment was due.

When a borrower defaults on a Promissory Note Rhode Island, lenders have steps to recoup their losses. In all situations, the lender should file with the courts to get a judgment that allows them to pursue the borrower. After the judgment, lenders can hire collection agencies to repossess collateral or try to obtain payment.

As a lender with a promissory note Rhode Island form, you will have to pay tax on the interest you receive. Rhode Island has a sliding income tax scale that ranges between 3.75% and 5.99%. In Rhode Island, people who earn the most money pay the highest income tax rate.

Once a borrower stops making payments on a Rhode Island promissory note, the next step is to

get the judgment. If you get a judgment in your favor, you can begin recuperating your loss by attempting to collect on the loan.

If the loan involves collateral, like an automobile, the lender can send a notice to cure the default if the borrower has not paid in 10 days. A third-party or the lender can take steps to repossess the automobile if the borrower does not make payments within 21 days of the notice to cure.

A promissory note Rhode Island needs to have a witness signature. In lieu of a witness, the lender and borrower can use a notary. The fee is paid for by the borrower.