Free Kansas Promissory Note

Promissory Note Kansas: The Essential Details for Lenders

Sometimes, people lend money without a second thought. Although the act appears charitable, lending money without clear terms to refund the loan may leave you regretting it. For instance, some debtors may be reluctant to repay the loan, subjecting you to a messy financial loss.

The best approach to address these undesirable situations is to sign a promissory note with your debtor. When you set clear terms, you can have peace of mind knowing your debtor will comply. Moreover, you’ll have proof before the court when seeking legal redress.

Here’s what you should know about a Kansas promissory note.

A Primer on Promissory Note

A Kansas promissory note is a legal document affirming that a borrower received a loan from the lender. In the document, the borrower agrees to adhere to the terms such as interest rates, installment amounts, maturity date and collateral.

In Kansas, promissory note are enforceable under the Contracts and Promises Statutes. Thus, if either party breaches the contract, the offended party can take legal action.

Types of Kansas Promissory Note

Like other states, Kansas laws recognize two primary forms of promissory note.

Secured Promissory Note

Borrowers can guarantee a refund of a secured loan through a valuable item. The lender can collect the item if the loan recedes to default. Depending on the principal amount, borrowers can give their cars, apartments, published works and jewelry as collateral for the loan.

Unsecured Promissory Note

An unsecured note allows the debtor to receive the loan without including collateral. Usually, this happens when the loan amount is a small sum or the parties to the contract are close family members. Without a guarantee for loan repayment, the lending institution can only seek help in a claims court.

Promissory Note Kansas: Usury Laws

Kansas has stringent usury laws that govern lenders’ interest rates. Under section 16-201 of the Kansas Statutes, the legal interest rate is 10% pa, while the general usury limit shouldn’t exceed 15% per annum. Lenders who charge beyond the legal rates may face legal action from the state.

Elements of a Kansas Promissory Note

A conditional promissory note generally describes the purpose of creation, loan terms, parties involved and their legal obligations.

Legal Names of the Parties

The note bears the names and valid addresses of the lender and borrower. Some lenders may also want the borrower’s physical address to collect the collateral easily.

Principal Amount

A Kansas note highlights the principal amount, excluding interest. Parties should verify that the note bears the correct figure when writing the principal amount.

Interest Rates

As a requirement, both parties should agree on an expected interest rate. Moreover, the rates should conform to the state’s legal requirement; 15% per year in Kansas.


The date is a vital reference point when writing a Kansas promissory note. It appears below the main title in a month-day-year format.

Payment Schedule

The payment schedule determines the frequency of payment, the number of installments and their respective amounts. If the lender charges a penalty for late payment, it should also be clear on the agreement.

Do You Require a Notary in Kansas?

Kansas promissory note do not require a notary unless the contract involves buying a home. All you need is a signature from the lender and borrower to make the agreement enforceable. Plus, if you have co-signers, they should also sign the contract.

Who Pays for the Attorneys’ Fees?

When writing a Kansas promissory note, the lender and borrower may agree to bear the costs of the legal process. However, if the debtor breaches the terms, the lender may want the debtor to cater to all legal fees.

Promissory note are vital financial instruments for lenders and borrowers. If you wish to create a Kansas note, do not hesitate to download an editable promissory note template from our website! It is free, and you can get it anytime as you please.