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Iowa Secured Promissory Note Template

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The Iowa secured promissory note records a promise to reimburse a lender an original balance with the addition of interest in a predetermined time frame. Both parties will need to agree on the interest rate for the balance. For the state of Iowa, this is mandated by the Usury Rate for the state, which can be found at Section 535.2(3)(a). When both parties are ready to sign the note to legally put it into effect, it is highly recommended that a witness verify the signatures of the parties to ensure it is a valid and legal note.

How to Write

Step 1 – On the first page of the document, enter the current date at the top of the page. Next, enter the full names and addresses of the borrower and lender. Then, enter the full monetary balance and the interest rate for the note.

Step 2 – In section one (1), check the box next to the payment type that will be put into effect for the note. The options consist of:

  • No Installments – Borrower pays a single lump sum plus interest at a predetermined date.
  • Installments – Borrower makes weekly or monthly payments with interest.
  • Interest Only Payments – Borrower pays weekly or monthly payments that consist of only interest until the balance is paid off.

If an option that has installments is selected check either weekly or monthly payments and the day the payment will be due.

Step 3 – Heading to section two (2), enter the final due date for the full balance and any accumulated interest and late fees.

Step 4 – In section three (3), enter the interest rate that goes into effect if the borrower fails to make a payment within fifteen days of the due date or fails to pay the full amount of the note by the final due date. Ensure you choose a legal interest rate by checking Iowa’s Usury rate found here: Section 535.2(3)(a).

Step 5 – In sections six (6) and eight (8), enter the time span and cost regarding late fees. Then, enter how many days after a default are required to pass before the lender can issue an acceleration.

Step 6 – Heading to section seventeen (17), enter the items that the lender will be given in the case of a default on the balance. Items typically include homes, boats, or vehicles.

To finalize and put the note into effect, enter the date on the last page followed by the signatures of the lender, borrower, and agreement witness.

 


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