Delaware 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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Delaware rules that this document follows

Maximum interest (private loans)No general cap — Max rate = 5 percentage points above the Federal Reserve discount rate in effect when the loan is made; loans over $100,000 not secured by a mortgage on the borrower's residence have no capSource: 6 Del. C. § 2301(a), (c)
Legal rate when none is statedSee statuteSource: 6 Del. C. § 2301(a) (legal rate = 5% over Federal Reserve discount rate)
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 note3 yearsSource: 10 Del. C. § 8106 (contracts, 3 years); 6 Del. C. § 3-118 (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 Delaware

Keep the interest rate at or below the Delaware 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 Delaware?

No general cap for written private loans (6 Del. C. § 2301(a), (c)). Max rate = 5 percentage points above the Federal Reserve discount rate in effect when the loan is made; loans over $100,000 not secured by a mortgage on the borrower's residence have no cap

Does a promissory note need a notary or witnesses?

No. A note signed by the borrower is enforceable in Delaware. 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?

3 years from default (10 Del. C. § 8106 (contracts, 3 years); 6 Del. C. § 3-118 (notes, 6 years)).

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