Free Connecticut Promissory Note

Promissory Note Connecticut: What Lenders Should Understand?

If you offer financial assistance to a close friend, it is essential to formalize your transaction for future reference. Without a legally enforceable agreement, unexpected issues may come up, making your debtor unable to refund the money. Worse still, a rogue borrower may vanish in unclear circumstances without paying the loan.

A formal promissory note gives you peace of mind, knowing you’ll get back the money on an agreed date. Most importantly, it assures you that you won’t lose your money regardless of what happens.

Read on to understand what the law says about a Connecticut promissory note.

A Primer on Promissory Notes

A Connecticut promissory note is a formal agreement outlining how the loan borrower and the lender will settle the loan. The agreement spans various aspects which set clear terms and conditions of borrowing the loan. In Connecticut, a promissory note for loan payment is a security document subject to enforcement under Contract and Usury Laws.

A general promissory note describes the following:

    • The sum lent in US Dollars
    • The borrowers' and lenders' identities
    • The interest rate
    • The timeline for loan repayment

What Are the Types of Basic Promissory Notes?

A Connecticut promissory note is either secured or unsecured.

When you sign a secured note, you should include a home, vehicle, or valuable property as collateral.

An unsecured promissory note for a short-term loan payment doesn’t have a provision for a security item. If you can’t pay back, the lender may lose the money. Unsecured contracts are only ideal if the principal amount is small.

What Does the Law Say About Interest Rates?

Title 37, Chapter 673 of Connecticut Usury laws define interest rates for promissory notes. According to the law, interest rates shouldn't exceed 12% per annum on consumer loans, and lenders who charge more than the legal rate risk being prosecuted for violating the law.

Content of a Connecticut Promissory Note to Pay Debt

Like in other states, a promissory note in Connecticut should have all the elements and clauses to become legally binding.

Fundamental elements include the following:


The creation date follows a defined format, starting from the month, day, and year.

Names of the Parties

A Connecticut note should bear the lender and borrower's legal names and mailing addresses. Borrowers should also include a physical address to help lenders retrieve collateral when signing secured contracts.

Principal Amount

The agreement specifies the amount of money given to the borrower. It is highly recommended that before signing the document, the parties should verify that the figures are accurate without typo errors.


The document contains an agreed interest rate calculated as an annual percentage. As already mentioned, interest rates in Connecticut shouldn’t exceed 12% per annum.

Installment and Late Charges

Lenders may allow repayment in weekly, bi-weekly, or monthly installments. The agreement should therefore specify the exact installment amount. In addition, if the lender suggests a penalty for late payment, it should appear in the document.

Important Clauses

In addition to the basic elements, standard Connecticut promissory notes have essential clauses governing the formal agreement between parties.

Interest Due

The clause defines whether the borrower will continue paying at the current interest rate in case of loan default.

Prepayment Penalties

The clause highlights if the borrower will incur penalties for repaying the loan before the end of the financial period.


The clause grants the lender to exercise accelerated rights. Under the clause, the lender can compel the borrower to clear the balance immediately in case of default on payment terms.

Attorney’s Cost

The attorney’s clause determines how to cover the legal cost if the agreement proceeds to court for resolution. Depending on the agreement, parties may cover their costs, or the lender will cover the entire attorney’s fees.

Presentments Waiver

The clause allows the lender to receive the loan from the borrower when not physically present.

Other important terms include the choice of law, severability, notice, and conflicting terms.

Are you looking to download a free Connecticut promissory note? Please get a printable & blank agreement copy from our website today.