Updated April 26, 2023
A South Dakota promissory note template binds a borrower and a lender into a legal deal requiring the borrower of a monetary balance to reimburse the lender in a scheduled and complete fashion. The lender in the transaction makes a profit by receiving interest on top of the original balance.
Table of Contents |
By Type (2)
Secured Promissory Note – Includes a section where the borrower sets aside an item such as a home, vehicle, or boat. This item is given to the lender to help cover the unpaid balance if the borrower is unable to recover after entering into default.
Download: Adobe PDF, MS Word (.docx), OpenDocument
Unsecured Promissory Note – Does not include a section on security. This adds financial risk to the transaction for the lender; it is recommended that the lender is careful in selecting a borrower by ensuring the potential borrower has a strong credit score and positive referrals.
Download: Adobe PDF, MS Word (.docx), OpenDocument
Usury Statutes
Under an obligation to pay interest, no rate being specified, interest is payable from date of incurrence of debt, unless the parties have otherwise agreed, at a maximum rate of the Category C rate of interest as established in § 54-3-16, and in the like proportion for a longer or shorter term. In the computation of interest for less than a year, three hundred sixty days are deemed to constitute a year.
The official state interest rates, as referenced throughout the South Dakota Codified Laws, are as follows:
(1) Category A rate of interest is four and one-half percent per year;
(2) Category B rate of interest is ten percent per year;
(3) Category C rate of interest is twelve percent per year;
(4) Category D rate of interest is one percent per month or fraction thereof;
(5) Category E rate of interest is four percent per year;
(6) Category F rate of interest is fifteen percent per year; and
(7) Category G rate of interest is five-sixth percent per month or fraction thereof.