Make a Wyoming Promissory Note

What Is the Maximum Amount of Yearly Interest That May Be Charged in Wyoming?

In Wyoming, the maximum amount of yearly interest that may be charged is 7% per year. However, judgments received may have an interest rate as high as 10% unless otherwise agreed to by the parties or by order of the court.

How to Write a Wyoming Promissory Note

The first step in writing a Wyoming promissory note is to ensure it has the proper title. If the note is secured, the word “secured” should be used in the title. This will help if there is a legal disagreement and a judge must determine whether the lender should be given access to the mentioned collateral. Following the title, certain information about the parties and the loan will be used to create the body of the contract:

• The date the Wyoming promissory note is created. This date is below the title. The most common format for the date is month, day, and year. This date is important because it helps create specific legal deadlines and shows when the parties entered into the loan repayment agreement. The date that the borrower signs the agreement is also important. It shows the date that the borrower acknowledged the loan and the obligation to repay it.
• The legal name of each party to the contract and their role. Use the legal name for every party in the contract: the lender, the borrower, and any co-signer. Then, designate the role for each party. For example, Blue Moon Auto Loans, LLC, Lender and Robert Jones, Borrower.
• The mailing address for each party. Make sure to include the city/town, state, and zip code with the mailing address. For secured notes, also include the physical address for the borrower and any co-signer if that address is different from the mailing address.
• The amount of money loaned to the borrower. This is most often referred to as the principal balance. This is the amount loaned without interest.
• The yearly interest rate for the loan. This is the amount of interest per year that will be added to the balance of the loan. The maximum interest rate in Wyoming is 7% on consumer loans.
• Payment agreement. This section explains the total number of payments the borrower must satisfy, the due date for each payment, and the amount of each payment. The amount of the late fee should also be documented in this section. The lender should place their payment processing address in this section for easy reference.

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If the Wyoming promissory note is secured, include a description of the collateral. Without this description, the lender may lose its right to take possession of the collateral.

After the main body of the promissory note, clauses are inserted to define the terms of the agreement. The most commonly used clauses are:

• Interest Due in the Event of Default. This is the interest rate assessed if the borrower defaults on the agreement.
• Payment Allocation. This is an explanation of how the payments made are split between the principal and the balance.
• Acceleration. This explains the lender’s legal right to demand immediate and full repayment of the outstanding balance if the borrower doesn’t follow the terms of the agreement.
• Prepayment. This clause explains whether the lender will assess a financial penalty if the borrower pays off the loan early.
• Attorney Fees and Costs. This is an explanation of how incurred attorney fees and costs by either or both parties will be paid if there is a legal dispute over the Wyoming promissory note.
• Waiver of Presentments. This is an explanation to the borrower that the lender doesn’t have to be physically present when payments are made.
• Severability. A clause that explains how the remainder of the note will still be valid if one part is found unenforceable.
• Conflicting Terms. An explanation of how conflicting terms will be resolved if they are found in the contract.
• Notice. Explain whether the borrower will be notified if the lender sues for default.
• Governing Law. A clause that lists the state whose laws will be used to govern the agreement and any related legal dispute.

A Wyoming promissory note doesn’t need to be signed in front of a notary. To make the agreement legally binding, the borrower should sign and date the agreement. If there is a co-signer, they must also sign and date the agreement.

A Sample Wyoming Promissory Note with Examples for Each Step

A Wyoming promissory note can be unsecured or secured. A secured promissory should be titled as such; it must also be further identified with specific language and requires a detailed description of the security interest (the property that will serve as the collateral). A secured promissory note should include the following section:

• Security and Priority: In this section, the borrower and lender (payee) agree that all obligations under the note will be secured by the collateral defined in the security agreement entered into between the borrower and lender. This section contains a general description of the collateral explicitly defined in the security agreement.

A secured promissory note is generally accompanied by a security agreement that allows the lender to seize the collateral (specific property) in the event of default by the borrower.

The security interest in the specific property should be outlined in a UCC financing statement. When the financing statement is filed with the appropriate government agency, the lender's interest in the specific property is deemed "perfected," giving the lender top priority over future lenders seeking a security interest in the same property.

Both unsecured and secured promissory notes in Wyoming should include the following sections:

• Definition of Terms: This section includes a list of terms and their meanings used in the loan agreement  ("As used in this Agreement, the following terms shall have the meanings set forth below").
• Payments: These are provisions relating to the terms for repayment of the amount due, including principal and interest, overdue amounts, default/nonpayment rate, manner of payment, and extension. This section should specifically note the date the promissory note was devised, the name and mailing address of the borrower and lender, the amount of money loaned to the borrower, the amount/annual percentage rate of interest to be charged (as allowed by applicable Wyoming state law governing maximum interest/usury rates for written contracts), how repayment will be made (installments, interest-only, lump sum, or, in the case of a secured promissory note, a balloon payment), the number of payments, the amount of each payment, the due date of each payment, any late fee to be charged for late payment, and where and how payment is to be made.
• Allocation of Payments: This section describes how much of each payment will apply to the interest/principal.
• Guaranty/Co-Signer (optional): In this section, a third party (the guarantor) agrees to be directly or collaterally responsible for the obligation of the borrower to the lender in the event of default (the borrower fails to pay).
• Representations & Warranties: This clause provides the facts and protections in the event of default, respectively, if the statements made are not true.
• Covenants: A covenant in a loan agreement requires the borrower to fulfill certain conditions, such as punctual payment of principal, or prevents the borrower from taking certain actions.
• Defaults/Interest Due upon Default: This section defines the events that constitute a default and the interest due upon default (as allowed by applicable Wyoming state law).
• Acceleration: This section requires the borrower to repay the remaining balance in the event of a default.
• Prepayment: This section states whether there will be a prepayment penalty or if the borrower is allowed to pay a sum of money to the lender before it is due/demanded without a penalty for doing so.
• Attorney Fees and Costs: This section describes which party will be held responsible for attorney fees and court costs should a case be filed and adjudicated in court due to a default.
• Waiver of Presentments: This section allows the lender to receive payment without presenting the promissory note.
• Non-Waiver: This section states that the entire promissory note is not waived if either party waives a certain section of the document.
• Severability: This section states that the rest of the promissory note will still be valid should a particular section be found illegal or incapable of enforcement.
• Integration: This section states that the promissory note constitutes the entire agreement between the parties.
• Conflicting Terms: This section states that an amendment will resolve any issue(s) and be determinative should the promissory note include terms that conflict.
• Notices: This section states the required form of all notices, requests, demands, claims, and other communications under the note, including notice to the borrower that the lender may seek a judgment against the borrower without notice and the addresses to which all official or legal correspondence should be delivered.
• Governing Law: This section defines the state law that will govern the promissory note.
• Dated Signature: In Wyoming, both unsecured and secured promissory notes must be signed and dated by the borrower and any co-signer; the lender need not sign. There is no legal requirement for promissory notes to be witnessed or notarized in Wyoming. Still, the parties may decide to have the document certified by a notary public for protection in the event of a lawsuit.

Promissory Note Resources in Wyoming

National Consumer Law Center

Credit Union National Association Guide to State Usury Laws                                                          

Help Center/Federal Student Aid      

CollegeScholarships.org

Wyoming Department of Health

University of Wyoming   

Wyoming State Bar