Washington Promissory Note Template

In Washington, when two parties (the debtor and the loaner) exchange money with each other, they need to complete specific legal papers to make their agreement valid. The Washington Promissory Note template is a legal document, without which Washington state law won’t recognize relations between the two parties as legal. But when both sides of the agreement sign it, it becomes legally enforceable for each of them.

In the promissory note template, both the loaner and the debtor register details of their agreement. They create terms and conditions that suit their interests.

Washington Usury Laws

Promissory relations between a loaner and a debtor are regulated by:

  • The Washington Code, Title 19—Business Regulations—Miscellaneous, Chapter 19.52—Interest—Usury, Paragraph 19.52.020—Highest rate permissible—Setup charges prescribe the main rules of completing the promissory process.
  • Chapter 1.16 of the Washington Code also has the power to manage these relations.
  • The Board of Governors of the Federal Reserve System states the maximum rate of interest of promissory relations in Washington.

According to these official legal documents, the main condition that makes any Washington promissory relations legitimate is its established interest rate.

The maximum interest rate possible in Washington for regulating promissory relations is 12% or 4% point above the average bill rate for 26-week treasury bills. It means the interest rate in Washington is considered legitimate while it doesn’t exceed the Washington state’s established rate of interest.

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Download your fillable Washington Promissory Note template in PDF.

Filling Out the Washington Promissory Note

Give out Basic Information

Write down the names of both the loaner and the debtor, their addresses, the interest rate, the amount borrowed, and the date.
Basic info specification part of promissory note form for Washington

Choose the Payment Method

Choose the method of payment among the following options:

  • Interest-only payments. The debtor pays only the interest rate weekly or monthly until they pay the full amount of money.
  • No installments. The debtor makes a single payment to the loaner.
  • Installments (write the amount of payment sum numerically). The debtor pays weekly or monthly.

State the date when the debtor has to pay the full amount borrowed.
Payment method choosing part of Washington promissory note template

Establish Delay Penalties and Conditions of the Acceleration

Enter conditions on which the debtor pays late fees to the loaner and mention circumstances in which the loaner can release the promissory note if the debtor pays before the due date.
Acceleration and penalties info part of promissory note for Washington

Complete the Signature Area

The last section of the promissory note demands the loaner’s, debtor’s, and witnesses’ names and signatures, and the current date.
Signature area of promissory note document for Washington

Published: Jan 22, 2021