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Nevada Promissory Note

Nevada promissory note template: no statutory usury cap on written contracts, 6-year statute of limitations. Free template. Attorney review available.

Introduction

Nevada puts no ceiling at all on the interest rate a maker and payee can write into a promissory note. Under Nevada Revised Statutes Section 99.050, the two parties may agree in writing to any rate, with one narrow exception: interest charged on consumer credit extended to a covered servicemember or their dependent can't exceed the lesser of 36% per year or the maximum rate federal law allows, or the agreement is void. If a note leaves the rate blank, Nevada fills the gap with a statutory default, the prime rate at the state's largest bank plus 2%, recalculated every January and July. A promissory note itself 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, and it's the paper trail that makes a family loan, a business loan, or a loan between friends enforceable if the maker doesn't pay. Nevada is also one of the more permissive states on confession-of-judgment clauses, but not because one takes effect the instant a payment is missed. Nevada Revised Statutes Sections 17.090 through 17.110 let a payee obtain judgment without a full lawsuit only after the maker signs a separate written statement, verified under oath, that's then filed with the court clerk, a formal extra step many states skip by banning the clause outright instead. A Nevada note doesn't need to be notarized or witnessed to be enforceable. You generally have 6 years from the note's last payment or its stated due date to sue to collect on a written note.

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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

    Nevada sets no statutory cap on the interest rate a maker and payee can write into a promissory note. Nevada Revised Statutes Section 99.050 lets them agree in writing to any rate, except that interest on consumer credit extended to a servicemember or dependent can't exceed the lesser of 36% per year or the federal maximum, or the agreement is void. If the note doesn't fix a rate in writing, the default rate is the prime rate at the largest Nevada bank plus 2% (Nevada Revised Statutes Section 99.040).

  3. 3

    A Nevada promissory note does not need to be notarized or witnessed to be enforceable. Nevada Revised Statutes Section 104.3104, Nevada's version of Uniform Commercial Code Article 3, lists what makes a note a negotiable instrument, and notarization isn't one of the requirements.

  4. 4

    Nevada permits a confession-of-judgment clause (letting the payee seek a court judgment without a full lawsuit), but acting on one takes more than a signature on the note itself: Nevada Revised Statutes Sections 17.090 through 17.110 require the maker to sign a separate written statement, verified under oath, and file it with the court clerk before judgment can be entered.

  5. 5

    You generally have 6 years from the note's last payment or its stated due date to sue to collect on a written promissory note in Nevada (Nevada Revised Statutes Section 11.190(1)(b); Section 11.200).

  6. 6

    If a Nevada note is secured by personal property rather than real property, the lender generally needs to file a UCC-1 financing statement with the Nevada Secretary of State to protect its priority against other creditors (Nevada Revised Statutes Section 104.9310).

  7. 7

    Promissory notes are commonly used in Nevada for family loans, business loans, and loans between friends. An isolated private loan like this doesn't trigger the licensing requirements of Nevada's installment loan law, which apply only to a person "engaged in the business of lending," not an occasional private transaction (Nevada Revised Statutes Sections 675.020, 675.060).

Key decisions before you file

Before you file a Promissory Note in Nevada, 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

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NEVADA PROMISSORY NOTE

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

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.

Nevada usury rule: Nevada sets no statutory ceiling on the interest rate the Maker and Payee may agree to in writing (Section 99.050(1)), except that interest charged on consumer credit extended to a covered servicemember or dependent may not exceed the lesser of 36% per annum or the maximum rate authorized under federal law, or the agreement is void (Section 99.050(2)). If no rate is stated here, the default rate is the prime rate at the largest bank in Nevada plus 2% per annum (Section 99.040).

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). Note (include only if the parties want a confession-of-judgment clause): Nevada permits a note to authorize the Payee to confess judgment against the Maker (Section 104.3104(1)(c)(2)), but using it still requires a separate written statement, verified under oath, filed with the court clerk under Sections 17.090 through 17.110; it does not fire automatically on default.

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 Nevada. An action to collect on this Note must generally be brought within 6 years of the Note's last payment or its stated due date (Section 11.190(1)(b); Section 11.200). If this Note is secured by personal property rather than real estate, the Payee should file a UCC-1 financing statement with the Nevada Secretary of State to protect its priority against other creditors (Section 104.9310).

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 Nevada, but may be added for evidentiary purposes): _________________________

Governed by Nevada Revised Statutes Section 99.050 (agreed interest rates) and Nevada Revised Statutes Section 11.190 (statute of limitations). This is a template; consult the current statute or an attorney to confirm details for your situation, attorney review is available and optional. For the full national Promissory Note template, see the full Promissory Note template.

Nevada Requirements for Promissory Note

Maximum Legal Interest Rate (Nevada Revised Statutes Section 99.050)

Nevada sets no statutory cap on the interest rate for a written contract; the maker and payee may agree to any rate. Interest on consumer credit extended to a covered servicemember or dependent may not exceed the lesser of 36% per annum or the federal maximum, or the agreement is void and unenforceable.

Installment Lender Licensing Scope (Nevada Revised Statutes Sections 675.020, 675.060)

Nevada's installment loan licensing requirements apply only to a person "engaged in the business of lending," not to isolated, incidental, or occasional private transactions. A private person-to-person promissory note does not trigger these requirements.

Negotiable Instrument Requirements (Nevada Revised Statutes Section 104.3104)

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 (Nevada Revised Statutes Section 11.190(1)(b))

Generally 6 years from the note's last payment or its stated due date to sue to collect on a written promissory note.

Secured Transaction Filing (Nevada Revised Statutes Section 104.9310)

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

Confession of Judgment Permitted (Nevada Revised Statutes Sections 17.090 to 17.110)

A confession-of-judgment clause is permitted but not self-executing; the payee can obtain judgment without a lawsuit only after the maker signs a separate written statement, verified under oath, filed with the court clerk.

Default Statutory Interest Rate When No Rate Is Fixed (Nevada Revised Statutes Section 99.040)

If a note does not fix a rate of interest in writing, the default rate is the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, plus 2% per annum, adjusted each January 1 and July 1.

Notarization Not Required for Validity (Nevada Revised Statutes Section 104.3104)

Nevada does not require a promissory note to be notarized or witnessed to be enforceable. Section 104.3104'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.

Frequently Asked Questions

No. Nevada Revised Statutes Section 104.3104, Nevada's version of the Uniform Commercial Code's negotiable-instrument rules, lists what makes a note valid and enforceable, 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 Nevada allows confession-of-judgment clauses, you can include one, but acting on it later still requires a separate written statement, verified under oath, filed with the court under Sections 17.090 through 17.110, not just presenting the signed note.

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 Nevada Revised Statutes Section 104.3104: 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 Nevada 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. If the note includes a confession-of-judgment clause, the payee can pursue that route instead of a full lawsuit, but only by filing a separate written statement, signed by the maker and verified under oath, with the court clerk under Sections 17.090 through 17.110.

Generally 6 years from the note's last payment or its stated due date, under Nevada's statute of limitations for actions on a written contract (Nevada Revised Statutes Section 11.190(1)(b)). 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 Nevada. An isolated private loan like this doesn't trigger the licensing requirements of Nevada's installment loan law, which apply only to a person engaged in the business of lending, not an occasional private transaction.