The Iowa promissory note templates are documents tailored to the state of Iowa that verify that a lender loaned money to a borrower with the expectation that the money will be reimbursed with the addition of interest. Offered are two versions, a secured and unsecured version. Both parties will want to ensure the interest rate selected for the note by checking the Usury Rate for Iowa found below.
Usury Rate – Maximum interest rate is 5% unless otherwise agreed upon in writing, in which case, maximum is set by Iowa Superintendent of Banking (Usury Rate History).
Laws – § 535.2(3)(a)
Types (2)
Secured Promissory Note – Provides security for the lender by setting aside personal possessions of the borrower such as homes, vehicles, and boats in the case the borrower defaults on the note.
Download: Adobe PDF, MS Word (.docx), OpenDocument
Unsecured Promissory Note – Does not include security for the lender. Because of this, the lender should lend to family, friends, or those with sufficiently high credit.
Download: Adobe PDF, MS Word (.docx), OpenDocument
Usury Rate
The legal rate of interest in Iowa is 5% per annum unless otherwise agreed to in writing by the parties. The Iowa Superintendent of Banking, in accordance with Iowa Code Section 535.2(3)(a) determines the usury rate on a month to month basis.
(Video) What is an Iowa Promissory Note?
How to Write
Step 1 – Download the Iowa note document – Enter:
- The document’s start date – dd/m/yy
- Borrower’s name
- Mailing address
- AND
- Lender’s name
- Mailing address
- AND
- Enter the principal sum of the note
- Enter the amount any unpaid annual percentage rate
Step 2 – Payments –
- Submit the due date of the full balance, all accrued interest, and late fees
Installments –
Check the box that indicates the method of payment –
- Submit the total amount that must be paid by the due date
- Should the borrower choose to pay in installments, check the “installments” box and enter the principal amount, required to be paid by the due date
- Check the box indicating frequency of payments
- Submit the dollar amount required for late payment fees
Step 3 – Security-
- If this will be an unsecured loan, check the box
- If the note is “secured,” provide any information regarding the retained property
Step 4 – Titled Sections and Subsections –
- Interest due in the Event of Default
- Allocation of Payments
- Prepayment
- Acceleration (and 6A.)
- Attorney’s Fees and Costs
- Waiver of Presentments
- Non-Waiver
- Severability
- Integration
- Conflicting Terms
- Notice
- Co-Signer – Check the applicable box – if there is a required co-signer provide a name
- Execution
- Governing Law – (Iowa state laws)
Step 5 – Signatures – All parties must sign before a witness:
- Lender’s signature
- Date of the signature – in mm/dd/yyyy format
- Printed name (lender)
- AND
- Borrower’s signature
- Date of signature – in mm/dd/yyyy format
- Printed name (borrower)
- AND
- Co-signer must submit their signature (if any)
- Date of signature – in dd/mm/yyyy format
- Printed name (Co-signer)
- AND
- Witness’ signature
- Date of the signature – in mm/dd/yyyy format
- Printed name (Witness)
