Iowa Promissory Note Templates

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Updated June 13, 2022

An Iowa promissory note template is a document 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 – The maximum interest rate is 5% unless another rate is established in a written agreement. In that casecase, the maximum is set by Iowa Superintendent of Banking (IA Usury Rates).

LawsIowa Code § 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 PDFMS 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 PDFMS 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)