Wisconsin Promissory Note
Wisconsin promissory note template within the 12% usury cap and 6-year statute of limitations under state law. Free template. Attorney review available.
Introduction
Wisconsin builds a specific warning into some promissory notes themselves. If a private loan counts as a consumer credit transaction under the Wisconsin Consumer Act, generally one for personal, family, or household purposes with an amount financed of $25,000 or less, the note must carry a printed notice, in type no smaller than 8 points, right next to the signature line, telling the borrower not to sign if there are blank spaces and that early payoff may entitle them to a partial refund of the finance charge. That $25,000 line is also about to move: a 2025 state law raises it to $50,000 starting January 1, 2027, pulling more private loans out of the Act's reach. A promissory note itself is simpler than any of that: a written, signed promise by one party, the maker, to pay a definite sum of money to another party, the payee, on demand or by a set date. Wisconsin's interest-rate rules stack in two tiers. Without a rate stated in writing, the default is 5% per year; with a written agreement, the general cap rises to 12% per year on the declining principal balance, though loans to a corporation or LLC and loans of $150,000 or more (other than one secured by an owner-occupied home) are exempt from that cap entirely. A Wisconsin note doesn't need to be notarized or witnessed to be enforceable, and confession-of-judgment clauses (letting the payee get a court judgment without a lawsuit) have been void in any note signed after June 18, 1972. You generally have 6 years from a missed payment or the note's due date to sue to collect.
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
Without a rate stated in writing, Wisconsin's default legal rate is 5% per year (Wis. Stat. Section 138.04). With a written agreement, the general usury cap rises to 12% per year computed on the declining principal balance (Wis. Stat. Section 138.05(1)(a)).
- 3
Loans to a corporation or limited liability company, and loans of $150,000 or more made after May 26, 1978 (unless secured by an owner-occupied one- to four-family home), are exempt from the 12% cap entirely (Wis. Stat. Section 138.05(5), (7)). If a loan over $2,000 in principal exceeds the cap and isn't exempt, the lender can still recover the principal but forfeits the interest, and can face a fine or up to 6 months in jail (Wis. Stat. Section 138.06).
- 4
A Wisconsin promissory note does not need to be notarized or witnessed to be enforceable. Wisconsin Statutes Section 403.104 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, which would let the payee obtain a court judgment against the maker without filing a lawsuit, are void and unenforceable in any Wisconsin note executed after June 18, 1972 (Wis. Stat. Section 806.25). A separate rule bars a merchant from even taking such an authorization from a customer in a consumer credit transaction (Wis. Stat. Section 422.405).
- 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 Wisconsin (Wis. Stat. Section 893.43(1)).
- 7
If a Wisconsin promissory note is secured by personal property, the lender generally needs to file a UCC-1 financing statement with the Wisconsin Department of Financial Institutions, not the Secretary of State, to protect its priority against other creditors (Wis. Stat. Section 409.310).
Key decisions before you file
Before you file a Promissory Note in Wisconsin, 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 guideCustomize your Promissory Note Template with DocDraft
Wisconsin Requirements for Promissory Note
Absent a written rate, the default legal rate is 5% per annum. With a written agreement, the general usury cap is 12% per annum computed on the declining principal balance (or an alternative $6-per-$100 formula for certain installment loans).
For a loan over $2,000 in principal that exceeds the Section 138.05 cap, the lender may still recover the principal but forfeits the interest. A lender who violates the cap may also be fined $25 to $500, imprisoned up to 6 months, or both.
Wisconsin does not require a promissory note to be notarized or witnessed to be enforceable. Section 403.104'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.
Generally 6 years from a missed payment or the note's stated due date to sue to collect on a written promissory note.
The Wisconsin Consumer Act governs a consumer credit transaction with an amount financed up to $25,000 (rising to $50,000 effective January 1, 2027 under 2025 Wisconsin Act 105), and requires a specific printed notice in at least 8-point type next to the customer's signature line on the note.
Loans to a corporation or limited liability company, and loans of $150,000 or more made after May 26, 1978 (unless secured by an owner-occupied one- to four-family dwelling), are exempt from the 12% cap entirely.
A confession-of-judgment authorization is void and unenforceable in any note executed after June 18, 1972. A merchant in a consumer credit transaction is separately barred from taking such an authorization from a customer at all.
If a note is secured by personal property, the lender generally must file a UCC-1 financing statement with the Wisconsin Department of Financial Institutions, not the Secretary of State, to perfect and prioritize its security interest against other creditors.
Frequently Asked Questions
Absent a written rate, Wisconsin's default legal rate is 5% per year. Where a rate is agreed in writing, the general cap is 12% per year computed on the declining principal balance. Loans to a corporation or LLC, and loans of $150,000 or more (other than one secured by an owner-occupied home), are exempt from that 12% cap entirely.
No. Wisconsin Statutes Section 403.104 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 (within Wisconsin's usury cap), the repayment schedule, what counts as default, and the signatures of the maker and payee. Since confession-of-judgment clauses are void in any Wisconsin note signed after June 18, 1972, don't include one; the note relies on a regular lawsuit for enforcement if the maker defaults. If the loan is a consumer credit transaction under the Wisconsin Consumer Act, generally $25,000 or less for personal or household purposes, the note also needs the required printed notice next to the signature line.
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 Wisconsin Statutes Section 403.104: 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 with the Wisconsin Department of Financial Institutions, not 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. Confession-of-judgment clauses are void in any Wisconsin note signed after June 18, 1972, and a merchant in a consumer credit transaction can't even take one from a customer, so the payee cannot get a judgment without filing a lawsuit.
Generally 6 years from a missed payment or the note's stated due date, under Wisconsin's statute of limitations for contract actions (Wis. Stat. Section 893.43(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 Wisconsin. A loan to an LLC is exempt from the 12% usury cap entirely, while a personal, family, or household loan is capped at 12% (or 5% absent a written rate) and may trigger the Wisconsin Consumer Act's notice requirement if the amount financed is $25,000 or less.