Texas Promissory Note Templates

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In the state of Texas, promissory notes are one way to bind loans between lenders and borrowers. Promissory notes can be secured and unsecured depending on the loan amount and agreement.

With a promissory note template, Texas law recognizes both secured and unsecured promissory notes as stipulated by the Texas Business and Commerce Code § 26.02 of Texas Law.

Texas Secured Promissory Note

Under the finance code in section 302.001, Texas promissory notes can be classified as “secured.” A secured promissory note is a note in which there is an agreement between borrower and lender.

In a secured promissory note Texas form, the borrower agrees to put up a form of collateral to secure the loan.

Depending on the note and what it is gets used for, the security can range from real estate, personal property, or other forms of collateral.

If there is collateral used with the note, then the secured promissory note will need to document the collateral item in detail. If it does not get documented, then the borrower may not need to give up the collateral if the note is defaulted on.

Secured promissory notes are usually detailed and thorough. You can find free Texas promissory note templates, and most will include items such as:

  • The date of inception of the note
  • The names and addresses of all the parties involved as well as the information of the witness that gives the document validity
  • The loan amount and the details of how and when payment will occur
  • A detailed description of the collateral put up in the agreement
  • Additional clauses that stipulate fees, interest rates, and other terms and conditions of the contract
  • Signatures from both parties and that of any cosigners or witnesses

Texas Unsecured Promissory Note

Unlike a secured promissory note, an unsecured promissory note does not involve any collateral. Instead, an unsecured promissory note is an agreement between two individuals exercising their good faith.

Typically, borrowers and lenders will have their relationship as collateral, and this will typically be enough that the note is fulfilled.


In the state of Texas, a promissory note is a legally binding document once both parties have signed it.

Though it does not need to be notarized, there needs to be a witness present in order to give it legal validity.

There are a couple of options available when trying to collect on a promissory note. There can be initial contact made by the borrower, followed by filing a claim in the court system.

In extreme cases, the lender may send the note over to a debt collector, but the fees may vary depending on the service you receive.

Yes. In the state of Texas, most promissory notes have a statute of limitations of four years. The statute of limitations goes into effect on the date the note is due.

In the state of Texas, interest rates in promissory notes are dependent on whether or not the interest rate is stipulated in the agreement in writing. If it is in writing, then the maximum interest rate that can be applied is around 18%.

However, there are some exceptions to the law. If there is no interest rate addressed in writing on the promissory note, then the maximum amount of interest that can be charged is 6%.