Updated February 19, 2024
A Washington D.C. unsecured promissory note is a legally binding contract that documents the details of a loan transaction. Such details include information about the borrower and lender, as well as the specific timeframe in which the borrowed amount must be repaid. An unsecured loan enables the lender to file a lawsuit against the borrower in case the borrower defaults. Interest rates can’t exceed 24% annually (§ 28-3301), and there is a six (6) year statute of limitations to enforce promissory notes in the D.C. court system (§ 28:3-118).