New Hampshire Promissory Note Template [PDF + Download]

A promissory note in New Hampshire is a legal document that obligates a borrower to repay a loan under agreed terms.

Understanding the promissory note's meaning is crucial, as it refers to a legally binding document used to formalize loan agreements in New Hampshire. By outlining repayment terms, this form ensures clarity between parties and provides legal protection.

While using promissory note samples for inspiration can be a convenient option for creating this document, consulting a lawyer is highly recommended and a much more secure option. A lawyer can provide extra legal protection by ensuring the document includes all necessary details accurately and complies with state laws.

Types of Promissory Notes in New Hampshire

All promissory notes must include basic elements such as the loan amount, repayment terms, and interest rates. However, the specific terms and conditions define the two main types of promissory notes: secured and unsecured.

Types of Promissory Notes

#1. Secured Promissory Notes

A secured promissory note is typically used for larger or more serious loans, often involving organizations or substantial financial transactions. In addition to the borrower's promise to repay, this type of note requires the borrower to provide collateral, such as an asset or property.

The collateral serves as security for the lender, allowing them to recover their funds if the borrower defaults. Thanks to it, this type is a more secure and faster way for the lender to recover their loan.

#2. Unsecured Promissory Notes

Unsecured promissory notes are the most common type, often issued for loans between trusted individuals, such as friends or family members. These loans generally involve smaller amounts and do not require collateral.

However, because there is no security, the interest rates for unsecured promissory notes are often higher to offset the risk for the lender.

Signing Requirements for Promissory Notes in New Hampshire

A promissory note in New Hampshire binds the borrower to the stated terms, but it is enforceable only if specific requirements are met. These include the following:

Signing Requirements

The document must be in written form.
It must clearly identify the parties involved, including the legal names and contact information of the lender and the borrower.
It should outline the key terms of the New Hampshire debt agreement, such as the amount owed, repayment schedule, and conditions of the agreement.
Both parties must sign the document to confirm their acceptance of the terms.

When these requirements are met, the promissory note is valid in court as evidence in case of disputes. For additional legal protection—particularly for larger or more formal loans—it is advisable to have the document witnessed or notarized.

Finally, you can always use available promissory note templates that are customizable to your specific needs to ensure your document includes all necessary details.

Statutory Considerations for New Hampshire Promissory Notes

In New Hampshire, promissory notes must comply with state laws to remain valid and enforceable. The table below outlines the interest rate caps under usury laws:

Type of Loan	Interest Rate Cap
With a Contract (Section 336:1)	No limit, except for consumer credit transactions under Section 358-K:1
Without a Contract (Section 336:1)	Capped at 10%
For Judgments (Section 336:1)	2% higher than the discount interest rate on 26-week U.S. Treasury bills

A repayment agreement in New Hampshire, such as a promissory note, is valid for personal and business loans. Regardless of the type of use, it’s important to follow New Hampshire promissory note requirements to make it enforceable. These include clearly defined repayment terms, interest rates, and signatures from all parties. Business loans may need additional clauses to address corporate responsibilities.

How to Enforce a Promissory Note in New Hampshire

To enforce a promissory note in New Hampshire when a borrower defaults on it, the lender can take several steps. Firstly, the lender should formally notify the borrower of the default and request payment. If this does not resolve the issue, the lender may file a claim in New Hampshire’s Small Claims Court if the owed amount does not exceed $10,000.

It’s important to be aware of the statute of limitations, which sets the maximum time after an event within which legal proceedings may be initiated. In New Hampshire, the statute of limitations is six years from the date the payment was due or the date of default.

After obtaining a judgment in court, the final step is to collect the debt, which may involve garnishing the debtor’s wages or placing a lien on their property. If a promissory note is secured by collateral, the lender may sell the collateral to recover the debt.

How Can a Promissory Note in New Hampshire Be Changed or Revoked?

A promissory note in New Hampshire can be changed or revoked if both the lender and borrower mutually agree to the changes. Any modification must be documented in writing to ensure you created an enforceable promissory note in New Hampshire.

This written agreement should clearly outline the changes, such as updated repayment terms or interest rates, and must be signed by both parties to confirm their consent.

Proper documentation is also essential to maintain the note’s validity and prevent disputes. Without a signed written agreement, the original terms of the promissory note may still be legally binding.