Colorado Promissory Note

A secured or unsecured loan note with installment or lump-sum repayment, interest within your state's legal limit, late fees and default terms.

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Colorado rules that this document follows

Maximum interest (private loans)45% per year — Any rate agreed in writing up to 45% per year; consumer loans under the UCCC are capped at 36% APR (§ 5-2-201)Source: Colo. Rev. Stat. § 5-12-103
Criminal usury threshold45%Source: Colo. Rev. Stat. § 18-15-104 (criminal usury: knowingly charging over 45% per year, class 6 felony)
Legal rate when none is stated8%Source: Colo. Rev. Stat. § 5-12-101
Late feesNo statutory cap on late fees for private (non-consumer-lender) loans; fee must be a reasonable liquidated-damages estimate and, together with interest, must not push the effective rate above the usury ceiling
Time to sue on a written note6 yearsSource: Colo. Rev. Stat. § 13-80-103.5(1)(a) (liquidated debts and notes, 6 years)
Notarization / witnessesNot required (optional for evidentiary value)

Rules current as of 2026-09-07. Statutes change; verify before relying on them.

How to use this Promissory Note in Colorado

Keep the interest rate at or below the Colorado ceiling shown above; a usurious note can cost the lender all interest and more. For loans between family members, the IRS applicable federal rate (AFR) is the minimum to avoid imputed-gift issues on loans above $10,000.

Sign one original; the lender keeps it and the borrower keeps a copy. When the note is paid, the lender should mark it 'PAID IN FULL' and return it.

Frequently asked questions

What is the maximum interest rate I can charge in Colorado?

45% per year for a private written loan (Colo. Rev. Stat. § 5-12-103). Any rate agreed in writing up to 45% per year; consumer loans under the UCCC are capped at 36% APR (§ 5-2-201) Above 45% is criminal usury.

Does a promissory note need a notary or witnesses?

No. A note signed by the borrower is enforceable in Colorado. Notarizing is optional; for a secured loan, file a UCC-1 or note the lien on the vehicle title to protect the lender.

How long can the lender sue on an unpaid note?

6 years from default (Colo. Rev. Stat. § 13-80-103.5(1)(a) (liquidated debts and notes, 6 years)).

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FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.