Free Massachusetts Promissory Note

How to Write a Valid Promissory Note in Massachusetts?

Sometimes when seeking financial help, your prospective lender may blink an eye if you can't guarantee an immediate payback. To avoid such inconveniences, you should have a valid promissory note to cushion the lender and protect your rights as a borrower.

If you’ve never used a promissory note, here’s how to fill out the form in Massachusetts, alongside other details that will surely make a significant difference.

Promissory Note Massachusetts: An Overview

A promissory agreement is a formal note in writing between a lender and borrower, promising that the debtor will pay the loan.

In Massachusetts, promissory contracts are legally binding and subject to Contract and Securities Laws. Typically, parties to the agreement include the lender, borrower and co-signers if necessary.

Before you assign a promissory note, you should consider the following options:

Secured Promissory Note

A secured version of the note includes security for loan repayment. The borrower should provide a detailed description of the item, including a car, home, watercraft or any valuable asset. The law further requires you to give the security item to the lender if you can’t pay the loan.

Unsecured Promissory Note

An unsecured promissory note doesn’t have a provision for a security item. As a result, the lender faces a greater risk of losing the loan amount and accrued interest. Usually, when you fail to pay the loan, the lender will seek redress in a small claims court or report to a credit bureau.

An unsecured template is only ideal if the lender gives money to a close friend or relative or transacts a small amount of money.

Promissory Note Massachusetts: Usury Laws

The Usury laws provide a legal guideline on the maximum interest rates lenders can charge. Section 3, Chapter 107 of The Massachusetts General Laws highlights 6% p.a. as the legal interest rate for promissory contracts. Similarly, Section 49, Chapter 271 considers an interest rate exceeding 20% annually unlawful.

How to Fill Out a Promissory Note

An easy way to write a simple promissory note is to download and fill out a ready template. Since templates are primarily similar across states, you only need to find a template that meets your needs.

You can download a template following the simple steps as under:

State the Principal Sum

Write the amount you received from the lender in US Dollars without any accrued interest.

Write the Date

The date appears below the principal amount, following a month-day-year format. The date is a handy reference point if you have legal disputes in the future.

Indicate Your City

The form should specify where you agreed, including the city and state.

Identify the Parties

Include the names and legal addresses of the debtor and lender. If you’re signing a secured contract, include a detailed description of your physical location to retrieve the collateral easily.

Describe the Maturity Date

Write the date when you should complete the full payment, including the principal amount and accrued interest.

Write the Payment Schedule

The payment schedule defines whether to pay in installments, lump sum or order. A Massachusetts promissory note follows an installment payment schedule. In addition, include the number of installments and how much the lender should pay for each installment. If there is a penalty for late payment, it forms part of the payment schedule.


A Massachusetts promissory note requires the borrower to append their signature to become valid. There is also a provision for a co-signer’s signature where applicable.

Do You Need a Notary in Massachusetts?

A promissory contract in Massachusetts doesn’t require a notary or witness to become valid. However, if you wish to notarize your agreement, you may still do it to add authenticity in case of a legal dispute.

Would you like to assign a promissory note for lending money? Unlike before, you don’t have to look for a commercial attorney. Instead, you can download a printable promissory note in Massachusetts from our website.