Maryland Promissory Note Templates (2)

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Updated July 08, 2022

A Maryland promissory note template is designed to serve as the platform for transactions involving the loaning of money from one party to another. The note requires the borrower of a monetary balance to reimburse the lender in the deal the original balance plus interest by the final due date.

Table of Contents

By Type (2)


Secured Promissory Note – This version gives the lender security in the case of a default on the loaned balance. Both parties agree on an item or items that will be given to the lender if the borrower cannot reimburse the lender the due amount. Items used as security typically consist of homes, vehicles, or boats.

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Unsecured Promissory Note – This version puts the lender at an increased risk, as no security is present. To prevent the loss of money, the lender should screen the borrower to ensure he or she has worthy credit and/or only lend to family/friends.

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Usury Rate

Legal interest rate is 6%, maximum of 8% if a written contract is established.

Statutes

Except as otherwise provided by law, a person may not charge interest in excess of an effective rate of simple interest of 6 percent per annum on the unpaid principal balance of a loan.

(a)    (1)    Except as provided in subsections (b), (c), (d), (e), and (f) of this section, a lender may charge interest at an effective rate of simple interest not in excess of 8 percent per year on the unpaid principal balance of a loan if there is a written agreement signed by the borrower which sets forth the stated rate of interest charged by the lender …

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