Maine Promissory Note
Maine promissory note template with no general usury cap on a private loan and a 6-year statute of limitations. Free template. Attorney review available.
Introduction
Maine repealed its general usury statute decades ago and never replaced it, so an ordinary private loan, between family, friends, or a small business, generally carries no statutory interest-rate ceiling under Maine law. The sections that once capped interest on personal loans, Title 9, Sections 228 and 229, were repealed in 1975 and 1973. A rate cap still exists, but only for a lender "regularly engaged" in making loans (more than 25 a year): 30% up to $2,000, 24% from $2,000 to $4,000, and 18% above $4,000, or a flat 18% above $8,000 financed. A promissory note itself is a written, signed promise by one party, the maker, to pay a definite sum to another, the payee, on demand or by a set date; the template below turns Maine's rate rules into an actual fillable note. A Maine note does not need to be notarized or witnessed to be enforceable. Confession-of-judgment clauses sit in an unsettled spot: Maine's negotiable-instruments statute doesn't strip a note of validity for authorizing the holder to confess judgment, but no statute confirms a court will actually enter judgment on that basis without a lawsuit, so this template leaves the clause out. You generally have 6 years from a missed payment or the note's due date to sue to collect on a written note in Maine.
Key Things to Know
- 1
A promissory note is a written, signed promise by one party (the maker) to pay a definite sum of money to another party (the payee), either on demand or by a set date.
- 2
Maine has no general statutory interest-rate cap for an ordinary private loan. The state's general usury statute, Maine Revised Statutes Title 9, Sections 228 and 229, was repealed in 1975 and 1973 and never replaced with a broadly applicable cap.
- 3
A narrower cap applies only to a lender "regularly engaged in the business of making loans" to consumers (more than 25 loans in the preceding calendar year): 30% per year on the unpaid balance up to $2,000, 24% from $2,000 to $4,000, and 18% above $4,000, or a flat 18% if the amount financed exceeds $8,000. (Maine Revised Statutes Title 9-A, Section 2-401) A one-off private lender, such as a family member, does not meet that "regularly engaged" threshold and falls outside this cap.
- 4
A Maine promissory note does not need to be notarized or witnessed to be enforceable. Maine Revised Statutes Title 11, Section 3-1104 lists what makes a note a valid negotiable instrument (an unconditional promise, a fixed amount, a signature, payable on demand or by a definite date), and notarization isn't one of the requirements.
- 5
Confession-of-judgment clauses (a clause letting the payee get a court judgment without filing a lawsuit) are in an unsettled position under Maine law. The negotiable-instruments statute does not treat a confession-of-judgment clause as disqualifying a note's validity, but no Maine statute confirms that clause is actually enforceable in court without a lawsuit; confirm the current rule before relying on one, and this template does not include such a clause.
- 6
You generally have 6 years from a missed payment or the note's stated due date to sue to collect on a written promissory note in Maine. (Maine Revised Statutes Title 14, Section 752)
- 7
If a Maine promissory note is secured by personal property, the lender generally needs to file a UCC financing statement to perfect the security interest and protect its priority against other creditors. (Maine Revised Statutes Title 11, Section 9-1310)
Key decisions before you file
Before you file a Promissory Note in Maine, a few decisions shape the document: which option to choose and what each one means. The Promissory Note guide walks through them.
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Maine Requirements for Promissory Note
For a lender regularly engaged in the business of making consumer loans, the finance charge is capped at 30% per year on the unpaid balance up to $2,000, 24% from $2,000 to $4,000, and 18% above $4,000, or a flat 18% if the amount financed exceeds $8,000.
To be a valid negotiable instrument, a note must be an unconditional promise to pay a fixed amount, signed by the maker, and payable on demand or at a definite time.
Generally 6 years from a missed payment or the note's stated due date to sue to collect on a written promissory note.
Maine does not require a promissory note to be notarized or witnessed to be enforceable. Title 11, Section 3-1104's list of what makes a note a valid negotiable instrument does not include notarization or witnessing; notarization is optional and used only for evidentiary purposes.
If a note is secured by personal property, the lender generally must file a UCC financing statement to perfect and prioritize its security interest against other creditors.
Maine has no general statutory interest-rate cap on an ordinary private loan. Maine Revised Statutes Title 9, Sections 228 and 229, the state's former general usury statute, were repealed in 1975 and 1973 and never replaced.
Maine's negotiable-instruments statute does not disqualify a note's validity for including a confession-of-judgment clause, but no Maine statute confirms such a clause is actually enforceable on a private note without a lawsuit. Confirm the current rule before relying on one.
The Consumer Credit Code's licensing and rate-cap requirements apply only to a lender "regularly engaged in the business of making loans" (more than 25 loans a year). An isolated private person-to-person loan does not trigger these requirements.
Frequently Asked Questions
Maine has no general statutory usury cap on an ordinary private loan; the state's old general usury statute (Maine Revised Statutes Title 9, Sections 228 and 229) was repealed in 1975 and 1973 and never replaced. A narrower cap applies only to a lender regularly engaged in the business of making consumer loans: 30% per year on the unpaid balance up to $2,000, 24% from $2,000 to $4,000, and 18% above $4,000, or a flat 18% if the amount financed exceeds $8,000.
No. Maine Revised Statutes Title 11, Section 3-1104 lists what makes a note a valid, enforceable negotiable instrument, and notarization isn't one of the requirements. Notarizing a note is optional and can help as evidence of who signed it, but it doesn't affect enforceability.
Include the principal amount, the interest rate, the repayment schedule, what counts as default, and the signatures of the maker and payee. Because Maine law does not clearly establish that a confession-of-judgment clause is enforceable on a private note, leave one out; the note relies on a regular lawsuit for enforcement if the maker defaults.
Yes, as long as it meets the basic requirements of a valid contract and, if it's meant to be a negotiable instrument, the elements in Maine Revised Statutes Title 11, Section 3-1104: an unconditional promise to pay a fixed amount, a signature, and payment on demand or by a definite date. It doesn't need to be notarized to be enforceable.
An unsecured note relies only on the maker's promise to pay. A secured note is backed by collateral, and if it's secured by personal property, the lender generally needs to file a UCC financing statement to protect its priority against other creditors.
The payee can declare the remaining balance immediately due (if the note includes an acceleration clause) and can sue to collect. Because Maine law does not clearly establish a confession-of-judgment clause as enforceable on a private note, the payee generally cannot get a judgment without filing a regular lawsuit.
Generally 6 years from a missed payment or the note's stated due date, under Maine's general statute of limitations for civil actions (Maine Revised Statutes Title 14, Section 752). Waiting too long can mean losing the right to sue on the note.
Yes. Promissory notes are commonly used for both family loans and business or LLC loans in Maine. Since Maine has no general usury cap on a private loan, the applicable rate cap, if any, mainly turns on whether the lender is regularly engaged in the business of making loans, not on whether the loan is to family or to a business.