Nebraska Promissory Note

Introduction

Key Things to Know

1. 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. 2

   Nebraska caps interest on most written loans at 16% per year, a rate unchanged since 1982; if the note doesn't state a rate, the default is 6% per year. A loan of $100,000 or more in aggregate principal is exempt from the cap entirely, a threshold raised from $25,000 effective July 18, 2026. (Neb. Rev. Stat. Sections 45-101.03, 45-102, and 45-101.04)

3. 3

   A Nebraska promissory note does not need to be notarized or witnessed to be enforceable. Nebraska's Uniform Commercial Code definition of a negotiable instrument (an unconditional promise, a fixed amount, a signature, payable on demand or by a definite date) does not include notarization among the requirements. (Nebraska Uniform Commercial Code Section 3-104)

4. 4

   Nebraska permits a confession-of-judgment clause, which would let the payee obtain a court judgment against the maker without a full lawsuit, but only through a formal court process: the maker personally appears in court and consents, or an attorney confesses judgment under a warrant of attorney filed with the court clerk. (Neb. Rev. Stat. Sections 25-1309 and 25-1312)

5. 5

   You generally have 5 years from a missed payment or the note's stated due date to sue to collect on a written promissory note in Nebraska, though confirm the current limitations period before relying on it. (Neb. Rev. Stat. Section 25-205)

6. 6

   If a Nebraska promissory note is secured by personal property rather than real property, the lender generally needs to file a UCC-1 financing statement with the Nebraska Secretary of State to protect its priority against other creditors. (Nebraska Uniform Commercial Code Section 9-310)

7. 7

   Promissory notes are commonly used in Nebraska for family loans and small business loans alike. A lender who is not engaged in the business of making loans, such as a friend or relative making a single loan, does not need an installment loan license from the Nebraska Department of Banking and Finance. (Neb. Rev. Stat. Section 45-336)

Nebraska Requirements for Promissory Note

• Maximum Legal Interest Rate (Nebraska Revised Statute Section 45-101.03)

  16% per annum on most written loans; the default rate absent a written contract rate is 6% per annum. A loan of $100,000 or more in aggregate principal is exempt from the cap entirely, a threshold raised from $25,000 effective July 18, 2026.

• Negotiability Requirements (Nebraska Uniform Commercial Code Section 3-104)

  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.

• Statute of Limitations (Nebraska Revised Statute § 25-205)

  Generally 5 years from a missed payment or the note's stated due date to sue to collect on a written promissory note; confirm the current limitations period before relying on it.

• Large-Loan Usury Exemption (Nebraska Revised Statute Section 45-101.04)

  A loan of $100,000 or more in aggregate principal is exempt from Nebraska's usury cap entirely, a threshold raised from $25,000 effective July 18, 2026. The 16% cap applies to loans below that threshold.

• Confession of Judgment Permitted Through Formal Process (Nebraska Revised Statute Sections 25-1309 and 25-1312)

  Nebraska permits confession of judgment, but only if the maker personally appears in court and consents, or an attorney confesses judgment under a warrant of attorney filed with the court clerk. A promissory note clause alone cannot substitute for this process.

• Secured Transaction Filing (Nebraska Uniform Commercial Code Section 9-310)

  If a note is secured by personal property, the lender generally must file a UCC-1 financing statement with the Nebraska Secretary of State to perfect and prioritize its security interest against other creditors.

• Installment Loan License Scope (Nebraska Revised Statute Section 45-336)

  An installment loan license is required only for a person engaged in the business of making loans. An isolated private person-to-person promissory note, where the lender is not in the business of lending, does not trigger this requirement.

• Notarization Not Required for Validity (Nebraska Uniform Commercial Code Section 3-104)

  Nebraska does not require a promissory note to be notarized or witnessed to be enforceable. The Nebraska Uniform Commercial Code's definition of a negotiable instrument does not include notarization or witnessing; notarization is optional and used only for evidentiary purposes.