Kentucky Promissory Note Templates

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Updated January 24, 2022

A Kentucky promissory note template is used in situations where a lender borrow’s money to an individual (called a ‘borrower’) with the expectation that the original balance will be reimbursed with the addition of interest. For the note to be completed, both parties will need to come to terms on topics such as interest rates, late fees, and items that will be used as security.

Usury Rate – The legal rate of interest is 8%. If an agreement exists, the general usury limit is the lesser of 4% greater than the Federal Reserve rate or 19%. When identified in a contract in writing on a loan greater than $15,000, any rate may be charged.

LawsKy. Rev. Stat. Ann. § 360.010

Types (2)

Secured Promissory Note – Includes security, which sets aside an item such as a home, vehicle, or boat that is given to the lender in the case of a default. The item chosen as security should be of equal monetary worth as the amount of money in the note.

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Unsecured Promissory Note – Does not include security. Because of this, the lender is at a far greater financial risk. To help prevent monetary loss, the lender should only lend to those with worthy credit and/or family and friends.

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Usury Rate

The legal rate of interest in Kentucky is eight percent (8%) per annum, but parties may agree in writing to an amount not to exceed four percent (4%) in excess of the discount rate on ninety (90) day commercial paper in effect at the Federal Reserve Bank in the Federal Reserve District where the transaction is consummated or nineteen percent (19%), on amounts $15,000 or less. Parties may agree in writing to higher rates of interest if the amount of the loan exceeds $15,000. Ky. Stat. Title XXIX § 360.010

(Video) What is a Kentucky Promissory Note?

How to Write

Step 1 – Download the Kentucky note document – Provide the required information:

  • Start date of the document – (dd/m/yy)
  • A Borrower’s name
  • Mailing address
  • AND
  • A Lender’s name
  • Mailing address
  • AND
  • Enter the principal sum of the note agreement
  • Submit the unpaid annual percentage rate of the note

Step 2 – Payments

  • Enter the full balance of the note upon the due date. The amount must include accrued interest and late fees

Installments –

Payment method (check the applicable box) – Proceed by submitting:

  • The total amount to be paid by the due date
  • Submit the amount of the principal of the note that is required to be paid by the due date
  • Indicate payment frequency by checking the applicable box
  • Submit the required amount that will be required for late fees

Step 3 –  Security-

  • If it shall be agreed that this would be an unsecured note, check the “unsecured” box
  • If the note is “secured,” submit any information regarding the property used as security

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 and submit the co-signer’s name
  • Execution
  • Governing Law – (Governed by the laws of the state of Kentucky)

Step 5 – Signatures – Parties are required to sign in the presence of a witness: Proceed by providing:

  • The Lender’s signature
  • Date of signature –  mm/dd/yyyy format
  • Print name
  • AND
  • The Borrower’s signature
  • Date of the signature – mm/dd/yyyy
  • Printed name of the borrower
  • AND
  • Co-signer’s signature (if co-signer is required)
  • Date of signature – in dd/mm/yyyy format
  • Print name
  • AND
  • Enter Witness’ signature
  • Date of signature – in mm/dd/yyyy format
  • Print name