Kansas Promissory Note Template

Sometimes it can happen that you need to land or borrow money, and the sum is rather significant. Regardless of who is giving you money (or to whom you give it if you are the lender), in the majority of cases, filling out the Kansas promissory note template is a good idea.

Generally, this form is a great legal tool that protects both the one who lends and the one who borrows and contains all the basic details about the money transfer. Among other info one can read from such notes, they reveal who borrowed from whom, when, and how much.

There are different reasons why you (as either a debtor or a creditor) had better formulate a promissory note if the money giving takes place. In this review, we will define such reasons and provide readers with all the needed info about promissory notes. Besides, we will talk about the peculiarities of the form that apply in the state of Kansas (and Cheyenne county as well) and touch on the topic of the local laws.

What You Should Include in Such Notes

In different periods of your life, you can be either a lender or a borrower. In both cases, it is useful to know what you must add to the note you create. A promissory note, like many other legal forms, has irreplaceable details and some kind of structure.

So, anytime you write this note in Kansas or any other American state, do not forget to include the following information:

• Both parties’ names and other data

It is necessary to write the names of both a borrower and a creditor. Besides, we would recommend you to include their phone numbers (or any other contact info) and addresses.

• The borrowed amount

Every promissory note should contain info about the exact sum borrowed by the debtor. An interest rate (if there is any) must be inserted, too. If there was a prepayment, this fact should be reflected in the document or included in the schedule we will tell about below.

• The payment schedule and maturity date (or the deadline)

If the sum is enormous, probably, the debtor will not pay it all at once. So, in the promissory note, it is essential to reflect the schedule both parties agreed on. In all cases, it is necessary to enter the maturity date, or the full payment deadline, in all promissory notes. This allows a lender to request the money on a certain day; on the other hand, a debtor is protected in case a lender randomly starts asking for their money without following the parties’ previous agreement.

• Miscellaneous conditions

If a debtor and a lender want, they can include other terms and conditions in their document. Also, in this section, they can define the note’s type, which we will explain in a moment.

• Signatures

Such notes are valid only if they are signed by both a debtor and a lender. Adding the date of signing to the form is compulsory as well.

Promissory Notes Types

Now that you know what should be added to a promissory note, we will explain the note’s types.

There are only two types of promissory notes:

• Secured
• Unsecured

The difference can be understood from the types’ names.

If the note is secured, it means that the borrower has offered collateral: something that can be used instead of the money to cover the debt in case the borrower suddenly cannot pay out in cash. It can be a piece of real estate, a vehicle, or any other thing that is equal in value to the debt sum (including an interest rate). For instance, this type is often used if the parties barely know each other or their relationship is not that close.

The opposite type — unsecured — presumes that there is no collateral, and the creditor is less protected in such cases. The borrower is not obliged to suggest something instead of the money. This is a common type used if parties are relatives or their relationship is close enough to trust each other.

However, unfortunately, sometimes relatives and friends can take advantage of good relationships and postpone the money return. Such cases happen here and there. We always recommend creating promissory notes if the debt is rather big; do not hesitate to choose the secured type if the sum is huge and you definitely want to get it back.

If something goes wrong and you feel like you will not get the money on time, you can always apply to the Cheyenne county district court. You can consult the court and Cheyenne county treasurer’s office to find out the current rules that will help to make your promissory note enforceable and lawful.

Lastly, it does not matter what type you select for your note; the information you will insert remains the same and mandatory for both types. The only difference is that a secured note will have the mandatory info about collateral, among other conditions.

Rules and Norms Applicable to Promissory Notes in Kansas and Cheyenne County

Speaking of usury laws, every American state offers its provisions on the topic. These provisions affect promissory notes because they set rules about interest rates and general limits.

In Kansas (including Cheyenne county), the Kansas Statutes regulate usury. The legal interest rate is set at the level of 10% (Section 16-201). The highest rate possible is 15% “unless otherwise specifically authorized by law,” as said in this section. Other laws can be checked in Chapter 16 of the Statutes.

As we already mentioned, if your note is well-developed and made in accordance with all the current Cheyenne County, Kansas, and federal norms, you can apply to the district court and start a trial. This may help you to get the money back sooner.

Conclusion

To sum up, we should warn you that creating promissory notes is an extremely important thing to do if you often deal with lending money. The document will protect your interests and help to remind debtors about their payments. Even if you do not lend the money all the time, when you suddenly give a significant amount to someone, remember that it is better to write a promissory note than not to write it.