Oklahoma Promissory Note Form

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Oklahoma Promissory Note: What Is It?

An Oklahoma promissory note is a written contract between two parties, the lender and borrower, that is related to the repayment of a loan. The document identifies the parties, the amount of the loan, and how much interest the borrower is required to repay. Oklahoma promissory notes may be secured or unsecured. A secured Oklahoma promissory note promises the lender a piece of collateral if the borrower does not repay the loan as promised. An unsecured promissory note is a signature loan. The lender may not take possession of something that belongs to the borrower if the borrower doesn’t pay.

What Is the Maximum Interest Rate That May Be Charged in Oklahoma?

The maximum interest rate that may be charged is 6% unless the parties agree to another rate in writing. Additionally, when a loan is made from one person to another, the maximum interest rate is 10%.

How to Write an Oklahoma Promissory Note

The first step to take to write an Oklahoma promissory note is to create the proper title. Secured promissory notes must have the word “secured” in the title. Without it, a legal disagreement in court could mean that the court treats the promissory note as unsecured. Next, use information about the involved parties and the loan to explain why the agreement exists and how the loan will be repaid:

  • The date that the Oklahoma promissory note was created. This date is placed below the title. This date, and the date of the signature, is formatted as month, day, and year. The creation date and the signature date are important components for proving the validity of the agreement. It also helps determine legal deadlines for certain actions.
  • Identification of the parties involved as well as the role they hold in the agreement. Use the legal name of those involved as well as their roles. This includes any co-signer who may be party to the agreement. Lenders or borrowers may also be entities. For example, City Auto Loans, Ltd., Lender.
  • The full mailing address for each party. This includes the city or town, state, and zip code. If the Oklahoma promissory note is secured, include the physical address for the borrower and any co-signer if it is different from the mailing address(es) listed. Lenders may have a main mailing address and an address for payments. If there is a separate address for payments, the payment address should be listed with the repayment information for easy reference.
  • The principal amount provided to the borrower. This is the amount of money provided by the lender to the borrower. Interest is not calculated into that amount. Before an Oklahoma promissory note is executed, make sure that this number is accurate. This is important because promissory notes are legally binding documents.
  • The interest rate for the loan. This is the amount of interest the lender is charging for the loan. The borrower and lender may agree on an amount in writing that is above the 6% limit unless it is a person to person loan. Then, the maximum interest is 10%. The interest may be expressed as annual percentage rate (APR), per annum, or per year.
  • Repayment agreement. The purpose of this section is to explain how the loan will be repaid by the borrower. It includes the payment address for the lender, the total number of payments that must be made to satisfy the loan, the due date for each payment, and the amount of each payment. If the lender charges a late fee, the amount of the fee should be documented as well as when the fee will be added onto the account.

If the Oklahoma promissory note is secured, make sure that there is a description of the collateral. Without this, a court may hold that the agreement between the parties is unsecured.

Then, an Oklahoma promissory note uses clauses to create the terms and conditions of the agreement. The most commonly used clauses are:

  • Interest Due in the Event of Default. If the borrower doesn’t follow the terms of the agreement, they will be charged an interest rate that is documented in this clause. This interest rate is often higher than the initial interest rate.
  • Payment Allocation. How the payments made by the borrower will be split between the principal balance and the interest accrued.
  • Prepayment. Whether the borrower will be required to fulfill a financial penalty for paying the loan off before the end of the contract.
  • Acceleration. The lender has the legal right to demand that the borrower fully repay the outstanding balance immediately because the borrower did not comply with the terms of the agreement.
  • Attorney Fees and Costs. How attorney fees and costs will be split if they are incurred by one or both parties if there is a dispute or disagreement over the promissory note.
  • Waiver of Presentments. The lender has no legal requirement to be physically present when the borrower makes their payments.
  • Severability. If one portion of the Oklahoma promissory note is found to be unenforceable, the rest of the promissory note remains valid.
  • Conflicting Terms. How any conflicting terms within the agreement will be clarified for the parties.
  • Notice. Whether the borrower will be notified if the lender plans to sue them for defaulting on the agreement.
  • Governing Law. The state whose laws will be used to mediate or litigate any dispute related to the promissory note.

There is no legal requirement to have an Oklahoma promissory note notarized. To execute the document, it should be signed and dated by the borrower. If there is a co-signer, the co-signer must also sign and date it if the lender wants the co-signer to be legally liable if the borrower doesn’t pay.


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