Nebraska Promissory Note Template [PDF + Download]

A promissory note is a widely used financial instrument that records loan agreements in Nebraska. It outlines the borrower's promise to repay a specific amount according to the agreed terms.

All repayment terms must be clearly outlined for the document to be legally binding and to avoid disputes. This is why promissory note templates are recommended—they simplify and speed up the drafting process while ensuring all necessary components are included and enforceable.

To fully understand what the promissory note entails, we will explore its structure, necessary requirements for enforcement, and other key aspects. Let's begin!

Types of Promissory Notes in Nebraska

Types of promissory notes in Nebraska differ based on the specific terms and conditions they include. The two primary types are secured and unsecured, each providing different levels of security for repayment.

Types of Promissory Notes

#1. Secured Promissory Notes

A secured promissory note is typically used for larger loans or when financial institutions are involved. In addition to general terms of the debt, this type of note includes collateral, such as property or assets.

If the borrower defaults, the lender can seize the collateral to recover the owed amount, which makes it a safer option for the lender.

#2. Unsecured Promissory Notes

An unsecured promissory note is a more basic type used for various loans, especially in personal transactions or informal agreements, but it can also be used between businesses or other entities.

It formalizes the agreement and makes the repayment terms legally binding but does not involve collateral.

While it offers less security for the lender, it still provides legal grounds to pursue repayment through court action if the borrower fails to pay.

Signing Requirements for Promissory Notes in Nebraska

Now that we are familiar with the term “promissory note” and its types, let's take a closer look at the necessary requirements for a promissory note to be legally recognized in Nebraska:

Signing Requirements

The promissory note must be in writing.
The note should clearly identify the borrower and lender, including the loan amount, due date, interest rate, and any other relevant condition of the Nebraska debt agreement.
Both the borrower and lender must sign the note to confirm their agreement to the terms.

Once all these elements are included, review the promissory note sample to ensure accuracy and completeness.

Although witnesses or notarization are not required for the note's enforceability in Nebraska, it's highly recommended to have the document witnessed or notarized for larger loans as an extra layer of security.

Statutory Considerations for Nebraska Promissory Notes

In Nebraska, promissory notes are governed by state laws that set maximum allowable interest rates to prevent usury. These rates are outlined in Nebraska Revised Statutes Chapter 45:

Type of Loan	Maximum Interest Rate
With a Contract (Section 45-101.03)	16% per annum
Without a Contract (Section 45-102)	Legal interest rate of 6%
For Judgments (Section 45-103)	1% above bond equivalent yield; rate of contract, or as specifically provided by law
For Delinquent Tax Payments Owed to the State (Section 45-104.01)	14% per annum

A promissory note can be used for both personal and business loans as long as it meets promissory note Nebraska requirements. This includes clearly stating the obligatory elements and complying with state usury laws.

How To Enforce a Promissory Note in Nebraska

To enforce a promissory note in Nebraska, when a borrower defaults, the lender can enforce repayment through several steps. Initially, the lender should formally demand payment from the borrower, providing notice of default.

If the borrower fails to respond or repay, the lender may file a lawsuit to obtain a judgment for the owed amount. For debts up to $6,000, the lender can file a claim in Nebraska’s small claims court, which offers a simplified legal process. The lender must provide a copy of the enforceable promissory note Nebraska and any evidence of missed payments to support their case.

It’s important to note that actions to enforce a promissory note in Nebraska must be initiated within five years from the due date. If the court rules in favor of the lender, a judgment will be issued requiring the borrower to repay the owed amount.

After obtaining a judgment, the lender may need to take further steps to collect the debt. This can include garnishing the borrower’s wages, placing a lien on their property, or working with a sheriff to seize assets.

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

A promissory note in Nebraska can be changed or revoked if both the lender and borrower mutually agree to the changes. Here are a few tips on how to handle this process properly:

Promissory Note Revocation

Mutual agreement: Any changes to a repayment agreement in Nebraska, including repayment terms or cancellation, require both parties to agree. Without mutual consent, modification cannot be enforced.
Written documentation: Amendments should always be documented in writing. This creates a clear record of the changes and helps the parties avoid potential disputes.
Signatures from both parties: The modified note should be signed by both parties. Signatures ensure the changes are legally binding.