When you lend money in Utah (and in any other American state), the lender can secure their money by ensuring that the borrower signs the Utah promissory note. The document proves that the lender lent the money and provides additional details like:
When the lent sum is large, or the lender wants a guarantee of a refund, the lender should choose a secured promissory note. That way, the borrower will give security just in case they cannot give the money back.
If the borrower is your family member, friend, or someone you can trust, you can opt for the unsecured promissory note. The promissory note template does not provide any information about any security that can be used to cover the debt.
Each state has its norms that tell about usury, and the state of Utah is not an exemption. You may find the relevant laws in the Utah Code (Title 15).
Section 1 of Chapter 1 in the mentioned Title advises on the maximum interest rate at the level of 10%. However, borrowers and lenders may agree on different conditions. To make those conditions valid, the parties have to include the information in the Utah promissory note template.
We have prepared a brief list of steps you should complete for the successful Utah promissory note obtainment.
It is crucial to find the correct template of a promissory note. Use our form-building software to get one.
Below the heading of the form on the left-hand side, write the borrowed sum in US dollars. On the right-hand side, insert the name of the County in Utah where the note is signed.
There is a blank line for the date of signing below the name of the county. Insert the date here.
In the suitable lines, add the name of the borrower (or “maker”) and the lender (or “holder”).
Again, you have to insert the sum in US dollars that the lender has given to the borrower. Write it both in letters and numbers.
Both parties should agree on a certain interest rate. Discuss and insert it in the document.
If the payment is delayed, the borrower may face penalties. Describe them in this section.
If there are other promissory notes signed by the borrower, add details about them.
The template contains a list of statements. The maker and the holder should read them carefully.
Both the maker and the holder should sign the note in Utah.