Tennessee Promissory Note Templates (2)

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Updated July 08, 2022

A Tennessee promissory note template is a signed promise stating that the borrower of a monetary balance will reimburse the lender of said balance in the time frame established in the template. The parties also agree on the interest rates incorporated into the transaction. It is important that the interest rate chosen is legal in the state of Tennessee; head to the bottom of this page for information regarding legal interest rates.

Table of Contents

By Type (2)


Secured Promissory Note – Secures the lender’s loaned money by ensuring he or she receives a physical item (from the borrower) in the case of default to help recover the borrower’s unpaid balance.

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Unsecured Promissory Note – This template does not include a section on security. This can result in the lender losing the loaned balance if the borrower defaults on the note and cannot recover. The lender can help remove this risk by screening all potential borrowers and by working with family and friends.

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Usury Rate

The maximum rate is 10% unless otherwise expressed in a written contract.

Statute

Except as otherwise expressly provided by this chapter or by other statutes, the maximum effective rates of interest are as follows:

(1) For all transactions in which other statutes fix a maximum effective rate of interest for particular categories of creditors, lenders, or transactions, the rate so fixed;

(2) For all written contracts, including obligations issued by or on behalf of the state of Tennessee, any county, municipality, or district in the state, or any agency, authority, branch, bureau, commission, corporation, department, or instrumentality thereof, signed by the party to be charged, and not subject to subdivision (1), the applicable formula rate;  and

(3) For all other transactions, ten percent (10%) per annum.

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