DocDraft Logo

Nebraska Promissory Note

Nebraska promissory note template with the 16% usury cap and 5-year statute of limitations under Nebraska law. Free template. Attorney review available.

Introduction

Nebraska just moved the line for which loans its usury cap even reaches. A law effective July 18, 2026 raised the exemption threshold from $25,000 to $100,000 in aggregate principal, so a loan under $100,000 stays capped while a larger loan falls outside the limit entirely. Below that threshold, a written note's interest rate is capped at 16% per year, a rule unchanged since 1982, with a 6% default rate if the note doesn't state one. 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, and it's what makes a family or business loan enforceable if the maker doesn't pay. A Nebraska note doesn't need to be notarized or witnessed to be enforceable. Nebraska is also unusual for permitting a confession-of-judgment clause, letting the payee obtain a court judgment without a full lawsuit, but only through a formal court process: the maker personally appears and consents, or an attorney confesses judgment under a warrant of attorney filed with the court. You generally have 5 years from a missed payment or the note's due date to sue to collect, though you should confirm the current limitations period before relying on it.

0/5000

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)

Key decisions before you file

Before you file a Promissory Note in Nebraska, a few decisions shape the document: which option to choose and what each one means. The Promissory Note guide walks through them.

Open the Promissory Note guide

Customize your Promissory Note Template with DocDraft

NEBRASKA PROMISSORY NOTE

Principal Amount: $[PRINCIPAL AMOUNT] Date: [DATE] Location: [CITY], Nebraska

1. PARTIES

Maker (Borrower): [MAKER'S FULL LEGAL NAME], of [MAKER'S ADDRESS]

Payee (Lender): [PAYEE'S FULL LEGAL NAME], of [PAYEE'S ADDRESS]

For value received, the Maker promises to pay to the order of the Payee the Principal Amount stated above, together with interest as set forth below.

2. PRINCIPAL AMOUNT

Principal: $[PRINCIPAL AMOUNT]

3. INTEREST RATE

Rate: [RATE]% per annum.

Nebraska usury cap: the rate may not exceed 16% per annum, unless this Note's aggregate Principal is $100,000 or more, in which case it is exempt from this cap. Absent a stated rate, the default rate is 6% per annum. (Neb. Rev. Stat. Sections 45-101.03, 45-102, and 45-101.04)

4. REPAYMENT SCHEDULE

[SELECT ONE:]

  • Installments: $[PAYMENT AMOUNT] due on the [DAY] of each month, beginning [START DATE], until paid in full.
  • On demand: Payable in full upon written demand by the Payee.
  • Lump sum: The entire unpaid Principal and accrued interest are due in full on [MATURITY DATE].

5. LATE PAYMENT, DEFAULT, AND ACCELERATION

A payment not received within [NUMBER] days of its due date is late, and a late fee of $[AMOUNT] or [PERCENTAGE]% of the overdue payment may apply. Upon default, the Payee may declare the entire unpaid Principal and accrued interest immediately due and payable (acceleration). Nebraska permits confession of judgment, a court judgment entered without a full lawsuit, but only through a separate 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 through 25-1312). This Note does not include a pre-signed warrant of attorney, so enforcement after a default generally requires the Payee to pursue a regular lawsuit.

6. PREPAYMENT

The Maker may prepay all or part of the Principal at any time without penalty, unless a prepayment penalty is separately negotiated and stated here: [PREPAYMENT TERMS, IF ANY].

7. GOVERNING LAW

This Note is governed by the laws of the State of Nebraska. An action to collect on this Note must generally be brought within 5 years of a missed payment or this Note's due date; confirm the current limitations period before relying on it (Neb. Rev. Stat. Section 25-205). If this Note is secured by personal property rather than real estate, the Payee should 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).

SIGNATURES

Maker Signature: _________________________ Printed Name: [MAKER'S FULL LEGAL NAME] Date: [DATE]

Notary Acknowledgment (optional; notarization is not required for this Note to be enforceable in Nebraska, but may be added for evidentiary purposes): _________________________

Governed by Neb. Rev. Stat. Section 45-101.03 (usury cap) and Neb. Rev. Stat. Section 25-205 (statute of limitations). This is a template; consult the current statute or an attorney to confirm details for your situation, attorney review is available. For the full national Promissory Note template, see the full Promissory Note template.

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.

Frequently Asked Questions

No. Nebraska's Uniform Commercial Code definition of a negotiable instrument doesn't list notarization or witnessing among the requirements for a note to be valid and enforceable. 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 (within Nebraska's 16% usury cap, unless the loan is $100,000 or more), the repayment schedule, what counts as default, and the signatures of the maker and payee. Nebraska permits confession-of-judgment clauses, but only through a separate court process, not a clause built into the note itself.

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 Nebraska Uniform Commercial Code Section 3-104: 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 rather than real estate, the lender generally needs to file a UCC-1 financing statement with the Nebraska Secretary of State 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. Nebraska allows confession of judgment, but only if the maker later personally appears in court and consents, or an attorney confesses judgment under a warrant of attorney filed with the court, not through a clause that fires automatically on default.

Generally 5 years from a missed payment or the note's stated due date, under Nebraska's statute of limitations for actions on a written contract (Neb. Rev. Stat. Section 25-205); confirm the current limitations period before relying on it. 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 Nebraska. A lender who isn't engaged in the business of making loans, such as a friend or relative making a single loan, doesn't need an installment loan license from the Nebraska Department of Banking and Finance.