Tennessee Promissory Note Templates

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A Tennessee promissory note is a legally binding document between a borrower and a lender. A promissory note Tennessee form can be used for personal and business needs. They are often used to secure loans for investments, big purchases, and personal loans. Tennessee law recognizes both secured and unsecured promissory notes.

Tennessee Secured Promissory Note

Under the state’s statute 29-2-101, Promissory notes can be considered secured agreements. With a secured promissory note template, Tennessee requires the borrower to put up collateral when entering into a loan with a lender. There are a variety of free Tennessee promissory note templates available online.

The security that the borrower uses as collateral will typically be assessed for value upon the drafting of the promissory note.

If security is used, the specifics will need to go into the note. If it is not, the lender may lose out on the ability to collect on the loan if the borrower were to default.

There are a variety of promissory note templates to choose from when drafting a secured promissory note. They are simple enough to fill out and will typically include the following:

  • The date of origination for the loan
  • Names and addresses of all the parties involved
  • The loan amount and time table for repayment if needed.
  • A detailed description of the securities put up as collateral.
  • Additional clauses that outline fees, interest rates, and other terms and conditions of the agreement.
  • Signatures from both parties and that of any cosigners or witnesses.

Once a secured promissory note is signed by both parties, the note becomes a living document binding both lender and borrower.

Tennessee Unsecured Promissory Note

For some loan agreements, an unsecured promissory note can be used. This type of note does not include collateral. Instead, an unsecured promissory note is typically straightforward with set payment dates.

Unsecured promissory notes may be more difficult to collect upon because collateral is not at stake on the part of the borrower.


In the state of Tennessee, you do not need to notarize a promissory note for it to be legally binding. In addition to the loan amount and stipulations of a loan, the promissory note becomes a living document once the lender and the borrower have signed it.

Yes. In the state of Tennessee, most promissory notes will have a six-year statute of limitations. The statute of limitations is simple enough to calculate because it begins on the date that the debt was due.

When determining the interest rate that can be used on a promissory note, the state of Tennessee uses a formula that is provided by the Tennessee Administrative Register.

If no interest rate has been documented in writing, promissory notes can implement an interest rate that is no greater than 10% per year in the state of Tennessee.