Oregon Promissory Note Template

What Is the Oregon Usury Law?

Oregon's usury law is Section 82.010 of the Oregon Revised Statutes. When the parties have not agreed on a rate of interest, state law sets the rate that applies instead. The law also caps the rate on smaller loans. Read the rules below before you fill in the interest rate on your Oregon promissory note.^[1.1]

• No agreed rate: If the parties have not otherwise agreed to a rate of interest, the rate for the covered transactions is nine percent per annum.^[1.1]
• Loans of $50,000 or less: A lender may not make a loan of $50,000 or less at an annual rate of interest above the greater of 12 percent, or five percent over the discount rate on 90-day commercial paper.^[1.2]
• Business and agricultural loans of $50,000 or less: The cap is the greater of 12 percent, or five percent over the discount rate, including any surcharge. The discount rate is the one on 90-day commercial paper at the Federal Reserve bank in the lender's district on the date the loan or first advance is made.^[1.1]
• Penalty: A lender who charges, contracts for, or receives more than the law permits forfeits the right to collect or receive any interest on that loan. The borrower repays only the principal amount borrowed.^[1.1]

Here is the general cap in the statute's own words:

Make a loan of $50,000 or less, except a loan made under paragraph (a) of this subsection, at an annual rate of interest exceeding the greater of 12 percent, or five percent in excess of the discount rate on 90-day commercial paper

Before you sign, both sides should settle these terms and write each one into the note so that nothing depends on memory:

• The principal, which is the sum being lent.
• The annual interest rate, checked against the limits above.
• The payment due day, either each calendar month or each calendar quarter.
• The payment amount, either a fixed sum or an amortization schedule that sets each payment.
• The maturity date, which is the date on which the entire balance becomes due.
• Whether the note is unsecured or secured, and if secured, which property backs the loan.

Oregon Promissory Note Form Details

The table below summarizes the key figures for Oregon. Use it as a quick check, and read the statute itself for the full text of each rule.

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How to Fill Out an Oregon Promissory Note Step by Step

The FormsPal Oregon promissory note template has six parts across three pages, so work through them in order. If you download the PDF instead of using the online builder, you can fill it in with the FormsPal PDF editor.

The screenshots under each step show the FormsPal Oregon promissory note template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.

1. Enter the date, amount, parties, and interest rate (page 1). Type the date and the principal amount, which is the sum being lent. Add the borrower's name and address, then the lender's name and address. Type the annual interest rate in the blank before "per annum."

   

2. Choose the payment due day (page 1). Initial one box only. Pick a due day of each calendar month or of each calendar quarter, then type that day number next to the box you initialed.

   

3. Choose the payment amount and set the maturity date (page 1). Initial one box: a fixed payment amount, or an amortization schedule with a number of years. With the schedule, each payment follows Exhibit A. Then enter the maturity date, which is when the full balance is due.

   

4. Choose unsecured or secured (page 2). Initial the unsecured box if no asset backs the note. Otherwise initial the secured box and describe the collateral on the lines provided. Collateral is property that backs the loan.

   

5. Sign as the borrower (page 3). The borrower signs on the "By" line and prints a name and title beneath it.

   

6. Sign as the lender (page 3). The lender signs on the "By" line and prints a name and title beneath it.

   

Review the completed note carefully before you sign it. Verify that the borrower's and lender's names, the principal amount, the interest rate, the payment due day, and the maturity date match the terms both sides agreed to. Confirm that you initialed the appropriate box in each group.

After both sides sign, each should keep a copy of the signed note. The borrower can use it to track payments against the schedule, and the lender can use it to confirm the balance. If you change a term later, such as the payment day or the interest rate, record the change in writing and have both sides sign it.

Terms Already Printed on the Oregon Template

Page 2 of the template prints several terms that need no entries from you. Read them carefully before you sign, because each one is part of the note and affects both the borrower and the lender:

• If the borrower defaults, the lender may accelerate the maturity date and declare the full unpaid principal and accrued interest due at once.
• The lender may assess a late fee of five percent on any delinquent amount.
• The borrower may prepay the note at any time, in whole or in part, with no prior notice and no penalty or premium.
• On a secured note, the borrower agrees not to sell or further encumber the collateral until the note is repaid in full, and to keep it insured.
• The note is governed by the laws of the State of Oregon, and the lender may assign it.

Frequently Asked Questions

Borrowers and lenders often ask how high an interest rate can go. The two answers below test a 30 percent rate and a 100 percent rate against Oregon's cap for loans of $50,000 or less.

Is a 30% interest rate illegal?

On a loan of $50,000 or less, a rate is illegal when it exceeds the greater of 12 percent, or five percent over the discount rate on 90-day commercial paper.^[1.2] Test any proposed rate, including 30 percent, against that formula before you agree to it.

Is it illegal to charge 100% interest on a loan?

The same cap applies to a loan of $50,000 or less.^[1.2] A lender who goes over the limit forfeits the right to collect or receive any interest on that loan, and the borrower repays only the principal amount borrowed.^[1.1]

General information, not legal or tax advice.

Other Oregon Forms
Some other popular Oregon templates readily available for download here and that can be modified in our hassle-free document maker.

• Oregon Last Will
• Oregon Small Estate Affidavit
• Oregon Bill of Sale
• Oregon Rental Lease Agreement
• Oregon Eviction Notice
• Oregon Power of Attorney
• Oregon Non-compete Agreement

Sources

1. Or. Rev. Stat. § 82.010.
   • 1.1 § 82.010
   • 1.2 § 82.010(3)(b)

Jennifer M. Settles

Author & Attorney

With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.