Oklahoma Promissory Note
Oklahoma promissory note template with the 10% usury threshold and 5-year statute of limitations under state law. Free template. Attorney review available.
Introduction
Oklahoma's own interest-rate statute never actually names a maximum rate for a written promissory note. Title 15, Section 266 lets the maker and payee "agree to any rate as may be authorized by law," pushing the real ceiling one level up, into the state Constitution. Article XIV, Section 2 supplies the backstop: unless the Legislature has separately fixed a different maximum for that category of loan, a written contract charging more than 10% per year is deemed usurious. Absent any written rate at all, the default is a flat 6% per year, stated in both the statute and the Constitution. The penalty for a knowing violation is unusually harsh: Article XIV, Section 3 forfeits the note's entire interest, not just the amount above the threshold, and separately lets the borrower recover double whatever interest was actually paid, if a suit is filed within 2 years of the note's maturity. A promissory note itself is simpler: 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 small business loan, or a loan between friends enforceable if the maker doesn't pay. The template below turns Oklahoma's rules into an actual fillable note rather than leaving the rate as a guess. An Oklahoma note doesn't need to be notarized or witnessed to be enforceable. Confession-of-judgment clauses aren't banned outright, but a bare clause written into the note accomplishes nothing on its own: the maker must personally appear in court and the payee must assent at that time, and any such authorization is void outright for a consumer loan. You generally have 5 years from a missed payment or the note's due date to sue to collect on a written note.
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
Oklahoma's general contracts statute states no flat percentage ceiling for a written note; it lets the parties agree to "any rate as may be authorized by law." Under the Oklahoma Constitution, unless the Legislature has fixed a different maximum for that category of loan, a written rate above 10% per year is deemed usurious, and the default rate absent any written agreement is 6% per year. A knowing violation forfeits the note's entire interest and exposes the payee to double-damages liability if sued within 2 years of the note's maturity. (Okla. Const. Art. XIV, Sections 2-3; 15 O.S. Section 266)
- 3
An Oklahoma promissory note does not need to be notarized or witnessed to be enforceable. Oklahoma'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 list notarization among the requirements. (12A O.S. Section 3-104)
- 4
Confession-of-judgment clauses are not banned outright, but a bare clause written into the note in advance accomplishes nothing by itself: Oklahoma only recognizes a confession of judgment when the maker personally appears in court and the payee assents at that time. Any such authorization is void outright if the note is a consumer loan. (12 O.S. Section 689; 14A O.S. Section 3-407)
- 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 Oklahoma. (12 O.S. Section 95(A)(1))
- 6
If an Oklahoma promissory note is secured by personal property, the lender generally needs to file a UCC-1 financing statement, and most filings for personal property go to the UCC Central Filing Office in the Office of the Oklahoma County Clerk rather than the Secretary of State. (12A O.S. Sections 1-9-310, 1-9-501)
- 7
Promissory notes are commonly used for family loans and business loans in Oklahoma. The Oklahoma Consumer Credit Code's licensing and disclosure rules apply only to a lender regularly engaged in the business of making loans, so an isolated private loan between family members or into a small business generally falls outside those requirements. (14A O.S. Section 3-104)
Key decisions before you file
Before you file a Promissory Note in Oklahoma, 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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Oklahoma Requirements for Promissory Note
Oklahoma does not require a promissory note to be notarized or witnessed to be enforceable. The Uniform Commercial Code'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.
Oklahoma's general contracts statute lets parties agree to "any rate as may be authorized by law" rather than stating a flat ceiling. Under the Constitution, unless the Legislature has fixed a different maximum for that category of loan, a written rate above 10% per annum is deemed usurious; the default rate absent any written agreement is 6% per annum.
Knowingly charging a rate greater than allowed forfeits the note's entire interest. The party who paid the excessive interest may separately recover double the amount paid, in a suit brought within 2 years after the note's maturity.
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 5 years from a missed payment or the note's stated due date to sue to collect on a written promissory note.
If a note is secured by personal property, the lender generally must file a UCC-1 financing statement to perfect and prioritize its security interest against other creditors. Most Oklahoma filings for personal property go to the UCC Central Filing Office in the Office of the Oklahoma County Clerk rather than the Secretary of State.
Oklahoma Consumer Credit Code licensing and disclosure requirements apply only to a lender "regularly engaged in the business of making loans." An isolated private person-to-person promissory note does not trigger these requirements.
A confession of judgment is only given effect when the maker personally appears in court and the payee assents at that time; a bare advance clause in a note does not by itself authorize judgment without a lawsuit. Any such authorization is void outright if the note is a consumer loan.
Frequently Asked Questions
Oklahoma's general contracts statute doesn't state a flat percentage cap for a written note; it lets the parties agree to any rate authorized by law. Under the Oklahoma Constitution, unless the Legislature has fixed a different maximum for that category of loan, a written contract charging more than 10% per year is deemed usurious. Absent a stated rate, the default legal rate is 6% per year. Confirm the current statute before setting a rate above 10%, since the penalty for a knowing violation is forfeiture of the note's entire interest, plus potential double-damages liability.
No. Oklahoma's Uniform Commercial Code definition of a negotiable instrument (12A O.S. Section 3-104) doesn't list notarization or witnessing among the requirements for a valid note. Notarizing a note is optional and can help as evidence of who signed it, but it doesn't affect enforceability.
Include the principal amount, an interest rate that doesn't exceed Oklahoma's usury threshold, the repayment schedule, what counts as default, and the signatures of the maker and payee. Don't rely on a bare confession-of-judgment clause: Oklahoma only gives one effect when the maker personally appears in court and the payee assents at that time, so the note should instead spell out that enforcement after a default happens through a regular lawsuit.
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 12A O.S. 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, the lender generally needs to file a UCC-1 financing statement, usually with the UCC Central Filing Office in the Office of the Oklahoma County Clerk rather than the 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. A bare confession-of-judgment clause written into the note doesn't let the payee skip that lawsuit; Oklahoma law only recognizes a confession of judgment when the maker personally appears in court and the payee assents at that time, and any such authorization is void outright if the note is a consumer loan.
Generally 5 years from a missed payment or the note's stated due date, under Oklahoma's statute of limitations for actions on a written contract (12 O.S. Section 95(A)(1)). 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 Oklahoma. The Oklahoma Consumer Credit Code's licensing and disclosure rules apply only to a lender regularly engaged in the business of making loans, so an isolated private family or business loan generally falls outside those requirements, though the same usury threshold and other rules described above still apply.