Florida Promissory Note Template [PDF + Download]

A promissory note in Florida is a legal document used to formalize a loan agreement by recording terms agreed upon between the borrower and the lender. It outlines the borrower's promise to repay a specific loan amount, and typical promissory note samples include specific details like the loan amount, interest rate, repayment method, and due date.

Now, let's move on to a more detailed explanation of the meaning of promissory notes so you can better understand their components, different types, and role in lending agreements.

Types of Promissory Notes in Florida

Florida has two main types of promissory notes—secured and unsecured. The main difference between them lies in the level of protection they provide to the lender.

Secured Promissory Note

A secured promissory note includes a borrower's promise to repay the loan, backed by collateral—a valuable asset pledged as security. As a result, if the borrower fails to meet repayment terms, the lender can claim the collateral to recover the money. This type of note reduces the lender's risk, as they are not solely reliant on the borrower's financial stability.

Unsecured Promissory Note

An unsecured promissory note, in turn, relies solely on the borrower's promise to repay the loan. While it is still legally enforceable, it offers no additional guarantees. These notes are commonly used for low-risk loans, small amounts of money, or with reliable borrowers who have a solid financial reputation.

Signing Requirements for Promissory Notes in Florida

A promissory note must meet specific signing requirements to be legally enforceable in Florida. These requirements ensure clarity and protect the parties involved in the loan agreement. Here are the key ones:

Signing Requirements

The document must be in writing.
It must clearly identify the parties involved.
The promissory note must include essential details about the Florida debt agreement, such as loan amount, repayment terms, due dates, late payment fees, and interest rate.
The signatures of all parties must be included to confirm the agreement.

While not mandatory, parties may choose to have the promissory note witnessed or notarized for added legal security and proof of validity. These extra steps help strengthen the document's enforceability in court.

Also, using a promissory note template can simplify the process. By filling in the details of their loan agreements in Florida, parties can ensure that all legal elements are included and their rights are protected.

Statutory Considerations for Florida Promissory Notes

Florida promissory note requirements must comply with the state’s usury laws under Chapter 687 of the Florida Statutes, which set strict interest rate caps to prevent excessive charges. Promissory notes can be used for both personal and business loans, provided they meet these state-specific legal standards. Below are the key interest rate limits:

Loan Type	Interest Rate Limit	Statute Reference
With a Contract	18%	Section 687.03(1)
Loans Over $500,000	Up to 25% per annum	Section 687.03(1)Section 687.071(2)(3)
Judgments	4% higher than the federal discount rate	Section 55.03(1)
Life Insurance Policy Loans	10% or adjustable legal maximum	Section 627.4585(2)
Consumer Finance Loan (Up to $25,000)	18%	Section 516.02(2)(a)

Exceeding 25% may lead to misdemeanor charges, while rates above 45% constitute a felony. To ensure validity, all promissory notes must comply with these legal requirements and include clear repayment terms, interest rates, and borrower-lender agreements.

How to Enforce a Promissory Note in Florida

To enforce a promissory note in Florida, the lender must take specific steps if the borrower defaults. Start by sending a formal demand letter requesting repayment and giving the borrower a deadline to fulfill their obligation. This letter serves as evidence of your attempt to resolve the matter.

If the borrower still fails to repay, the lender can file a claim in Florida small claims court for unpaid amounts up to $8,000. For larger sums, the case must be filed in county or circuit court. The lender will need to provide a copy of the enforceable promissory note in Florida, proof of default, and payment history to support their claim.

The statute of limitations to enforce a promissory note in Florida is five years for written agreements and four years for oral agreements. Winning the case allows the lender to seek remedies like wage garnishment or liens to recover the debt.

How Can a Promissory Note in Florida Be Changed or Revoked?

A promissory note in Florida can be changed or revoked if both parties—the borrower and the lender—mutually agree to the changes. This often happens when payment terms need adjustment or the debt is paid off early. However, any modification to the promissory note must be properly documented to ensure it is legally enforceable.

To make changes, create a written agreement outlining the new terms and make sure it’s signed by both parties. Oral changes are risky and may not hold up in court, whereas proper documentation protects both sides and helps avoid disputes.

If the promissory note involves structured repayment, updating the repayment agreement in Florida ensures clarity and legal compliance.