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Iowa Promissory Note Templates

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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 writng, in which case, maximum is set by Iowa Superintendent of Banking (Usury Rate History).

Laws§ 535.2(3)(a)


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.

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.

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)