South Dakota Promissory Note Templates

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A promissory note is a standard document that binds a borrower to a lender for repayment of a loan. In South Dakota, promissory notes can be secured and unsecured. You can complete these agreements with a free South Dakota promissory note.

The details that constitute a promissory note are in the South Dakota codified laws under rule 31:01:03:07. The Municipal Government manages promissory records in South Dakota.

South Dakota Secured Promissory Note

Under the state’s rule 31:01:03:07, South Dakota promissory notes can be secured. A secured promissory note is a note in which an agreement to pay off a loan uses collateral as security. A secured promissory loan can include liens on the interest of the borrower.

These interests can include real estate, personal property, easements, and other assets.

Acceptance of securities is subject to the lender. Any accepted securities will typically be reviewed before the loan gets executed to make sure it meets the standards of collateral.

When filling out a secured promissory note South Dakota form, the application process will include a detailed outline of the loan, the borrower, the lender, and any securities that will need to go in place.

In addition to the necessary information, detailed clauses can go in the form too. Clauses can consist of aspects of the agreement, including but not limited to:

  • Lawyer fees
  • Details of the securities
  • Acceleration (the right of the lender to demand prompt payment if there have been missed payments)
  • Prepayment
  • Detailed interest accrument.

Once both parties sign a secured promissory note, the note then becomes a living, binding document.

South Dakota Unsecured Promissory Note

With an unsecured promissory note template, South Dakota allows agreements to be made without the collateral. For low stake borrowing agreements such as that between friends or family members, an unsecured promissory note might be your best option.

Instead of collateral, there will typically be a payment structure that is outlined with regular payments made by the borrower to the lender.

Because they are unsecured, these types of notes can be challenging to collect on if the borrower defaults on a payment. There are methods to collect on a loan, including a petition to your small claims court.


A secured promissory note is usually needed to secure a large loan from a bank or other lender. The loan can be for business needs or personal needs. Some universities will also accept promissory notes as part of tuition payment plans.

Yes. As stipulated by the South Dakota stature 54-3-16, interest can be established on a promissory note.

There is no interest rate limit if there is a written agreement where an interest rate is established. If there is no written agreement in place, then the maximum interest rate that can be applied is 12%.

Generally, lenders and borrowers will establish an acceptable interest rate for both parties. The length of the loan and the amount of the loan will drive the agreed-upon interest rate.

The collateral will typically be an asset like a home or a vehicle. Before the collateral is accepted, it will usually be assessed to maintain the value of the loan. The collateral that is received can be both tangible and intangible assets. Collateral needs to be detailed and specified in a promissory note to collect it.