The Maine promissory note templates are formal ‘promises’ for a borrower of a monetary balance to reimburse a lender the loaned amount of money in addition to interest. The interest rate (also called “usury rate”) that is used for the agreement needs to be legal in the state of Maine, and can be found at Me. Rev. Stat. tit. 9-B, § 432.
Usury Rate – Legal interest rate is 6% (no usury limit mentioned in statutes).
Laws – 9-B § 432
Types
Secured Promissory Note – The lender and borrower agree on an item/items that will be used as security in the case of a default on the balance. Items typically used as security are homes, vehicles, and boats.
Unsecured Promissory Note – This version does not include security. Because of this, the lender is at an increased risk for losing the loaned balance. The lender should ensure the borrower has worthy credit and/or is a well-known friend or family member.
Usury Rate
The legal interest rate in Maine is 6% per annum unless otherwise agreed to in writing. Me. Rev. Stat. tit. 9-B, § 432
(Video) What is a Maine Promissory Note?
How to Write
Step 1 – Download the Maine note document – Submit the following:
- The document start date- in dd/m/yy format
- Borrower’s name
- Mailing address
- AND
- Lender’s name
- Mailing address
- AND
- Submit the amount of the principal sum of the note
- Submit the amount of the unpaid percentage rate – annually
Step 2 – Payments
- Submit the full balance (must be paid in full unless otherwise stated) of the note due upon the due date. Accrued interest and late fees must be included
Installments –
Payment method (check the box that reflects the agreement) – Submit:
- The total amount to be paid in full upon a due date as stated
- Enter a complete amount of the principal of the note
- Select payment frequency by checking the applicable box
- Enter the required late fee amount
Step 3 – Security-
- If it’s agreed that this would be an unsecured note, check the “unsecured” box
- If agreement is that the note be“secured,” provide a description of the secured 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 – Enter co-signer’s name (if required
- Execution
- Governing Law – (According to the related laws of the state of Maine)
Step 5 – Signatures – Must be applied before a witness – Enter:
- Lender’s signature
- Date of signature – mm/dd/yyyy format
- Print name
- AND
- Borrower’s signature
- Date of the signature – in mm/dd/yyyy format
- Print name
- AND
- Co-signer’s signature (if required)
- Date of signature – dd/mm/yyyy
- Print name
- AND
- Witness’ signature
- Date of signature – in mm/dd/yyyy format
- Print name
