Kansas Promissory Note Template [PDF + Download]

A promissory note in Kansas is a legally binding document in which the borrower promises to repay the borrowed money under agreed terms. It features some specifics of a loan agreement in Kansas, including loan amount, payment methods, interest rate, and others, but it’s not the same document.

In this article, we will delve into the meaning of promissory notes, their essential contents, and the two main types of promissory notes to provide a clear understanding of this legal document.

Types of Promissory Notes in Kansas

Promissory notes in Kansas are generally classified into two types: secured and unsecured. These notes differ primarily in the level of security provided to the lender for repayment.

Types of Promissory Notes

#1. Secured Promissory Note

While less common in practice, a secured promissory note is more favorable to the lender. It involves collateral, such as property or assets owned by the borrower; if they fail to repay the loan as agreed, the lender has the right to seize the collateral to recover the debt. This type gives the lender greater assurance of repayment.

#2. Unsecured Promissory Note

An unsecured promissory note is commonly used for smaller loans, often between family members or close relatives. It is based solely on the borrower's promise to repay without any collateral. This type carries a higher risk for the lender, as repayment depends entirely on the borrower's financial ability and commitment to honor the agreement.

Signing Requirements for Promissory Notes in Kansas

The signing requirements for a promissory note outline the essential needs for legal recognition and validation. A proper document ensures compliance with these requirements, which include the following:

Signing Requirements

The promissory note must be in written form.
It should clearly identify the parties involved.
It must detail the Kansas debt agreement, including the loan amount, due date, and payment terms.
Both parties must sign the document for it to be legally valid.

With these elements, the promissory note serves as valid proof in court. However, using a promissory note template is often easier and more efficient, as it ensures all necessary elements are included and reduces the risk of missing important details.

Additionally, the document can be witnessed or notarized for added validation to further ensure its accuracy and compliance.

Statutory Considerations for Kansas Promissory Notes

Kansas has specific usury laws that govern the interest rates that can be charged on promissory notes. These laws are outlined in Chapter 16, Article 2 of the Kansas Statutes.

Below is a summary of the key interest rate provisions for promissory notes in Kansas:

Type of Loan	Maximum Interest Rate
Without a Contract (Sec. 16-201)	10% per annum
With a Contract (Sec. 16-207(a))	Up to 15% per annum unless a higher rate is authorized
For Judgments (Sec. 16-204(e)(1))	4% above the federal discount rate
For Judgments on Contract (Sec. 16-205(a)	The contract rate applies but cannot exceed the legal limit

In Kansas, these documents can be used for both personal and business loans, but they must comply with these requirements for the promissory note in Kansas to remain valid.

How to Enforce a Promissory Note in Kansas

To enforce a promissory note in Kansas, the lender must follow specific steps if the borrower defaults. The first is to contact the borrower to discuss the missed payments and attempt an informal resolution.

An enforceable promissory note in Kansas provides legal grounds for further action if repayment is not made. The lender can send a formal demand letter outlining the amount owed and a deadline for payment. If the borrower still does not comply, the lender may file a claim in Kansas small claims court for amounts within the $4,000 limit.

If the court rules in the lender’s favor, it will issue a judgment, which can then be enforced through legal methods such as wage garnishment or property liens. It’s important to act within Kansas’s five-year statute of limitations for written contracts to preserve legal rights.

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

A promissory note in Kansas can be changed or revoked if both parties mutually agree. This often involves modifying the repayment agreement in Kansas to reflect new terms, such as adjusting payment deadlines or canceling the debt.

However, these changes must be documented in writing to prevent misunderstandings and to ensure they are legally binding.

To amend or revoke the note, create a written agreement outlining the changes and have all parties review, sign, and date it; this ensures the modifications are clear and enforceable.