New York 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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New York rules that this document follows

Maximum interest (private loans)16% per year — 16% per year max by written contract (civil usury); loans of $250,000 or more are exempt from civil usury, and loans of $2,500,000 or more from all usury; corporate borrowers may not assert civil usurySource: N.Y. Gen. Oblig. Law § 5-501; N.Y. Banking Law § 14-a; Gen. Oblig. Law § 5-521
Criminal usury threshold25%Source: N.Y. Penal Law § 190.40 (criminal usury in the 2nd degree: over 25% per year, class E felony)
Legal rate when none is stated9%Source: N.Y. C.P.L.R. § 5004
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: N.Y. C.P.L.R. § 213(2)
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 New York

Keep the interest rate at or below the New York 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 New York?

16% per year for a private written loan (N.Y. Gen. Oblig. Law § 5-501; N.Y. Banking Law § 14-a; Gen. Oblig. Law § 5-521). 16% per year max by written contract (civil usury); loans of $250,000 or more are exempt from civil usury, and loans of $2,500,000 or more from all usury; corporate borrowers may not assert civil usury Above 25% is criminal usury.

Does a promissory note need a notary or witnesses?

No. A note signed by the borrower is enforceable in New York. 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 (N.Y. C.P.L.R. § 213(2)).

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