Oklahoma Promissory Note Template [PDF + Download]

An Oklahoma promissory note is a legal contract determining the terms and conditions of a loan agreement between a lender and a borrower. It makes an Oklahoma loan agreement legally binding by obliging a borrower to pay off the debt to a lender, usually including an interest rate.

As promissory notes in this region must be in written form, let’s discuss what terms and elements a promissory note template should feature, as well as how you can enforce or revoke such a document.

Types of Promissory Notes in Oklahoma

Oklahoma promissory notes can be divided into two types—secured and unsecured. While the notes may have similar stipulations, such as dates, lender, and borrower information, their enforceability differs.

Let’s explore both types in detail:

Types of Promissory Notes

#1. Unsecured Promissory Note

An unsecured promissory note states both the borrowers’ and lenders' information and stipulates dates, interest rates, and both parties’ obligations.

Still, this promissory note is more challenging to enforce in case of a borrower’s default, as it does not contain collaterals (a property or asset a lender can claim in case of a default).

Instead, a lender solely relies on the terms stated in the promissory note and Oklahoma debt agreement and tries to recover the debt by filing a lawsuit or sending a demand letter before doing so.

#2. Secured Promissory Note

A secured promissory note is a legally binding contract with collateral as the main element. This element allows a lender to recover the debt of the Oklahoma repayment agreement more easily, as they can claim the right to a borrower’s asset or property.

Specifically, a lender can seize collateral whose value equals or exceeds the debt amount. If the collateral value exceeds the debt sum, the lender can sell it and return the remainder to the borrower.

Signing Requirements for Promissory Notes in Oklahoma

To ensure that your promissory note in this state is legally binding, you should create it according to promissory note Oklahoma requirements.

Here are the requirements that formalize this agreement:

Signing Requirements

The document must be in written form.
It must include both parties’ names and contact details.
The loan amount and repayment terms must be stated.
Noting the interest rate and collateral is mandatory to create a secured promissory note.
This agreement should specify that it is subject to Oklahoma's laws and regulations.

Witnesses are recommended but not required when signing an Oklahoma promissory note. Similarly, parties should notarize their documents. Like having witnesses, notarizing this legal document is highly suggested for loans exceeding $10,000.

Statutory Considerations for Oklahoma Promissory Notes

The rules and regulations for Oklahoma promissory notes are classified under Oklahoma Statutes Chapter 6 - Loans of Money. The usury laws in Oklahoma refer to interest rates for loans with contracts, loans without contracts, and monetary judgments.

For loans with contracts, a lender and borrower can decide on any interest rate. On the other hand, loans without contracts have a 6% interest rate limit. These interest rates apply to both personal and business loans.

Finally, interest rates for monetary judgments must not exceed 10% annually. The Administrative Director of the Courts determines the monetary judgment interest rate based on the Treasury Bill Yield average rate for the previous year.

How to Enforce a Promissory Note in Oklahoma

To enforce a promissory note in Oklahoma, you can send a demand letter to the borrower and take legal action. If you have a secure note, you can claim collateral, while if you have an unsecured note, you can file a small court claim.

An enforceable promissory note in Oklahoma can imply different enforcement types depending on whether the note is secured or unsecured.

With secured notes, you can demand a borrower’s property or asset as compensation for the loan amount. The enforcement of such a contract must start within six years after the due date or the agreed repayment date, as stated in Commercial Code §12A-3-118.

Enforcing an unsecured promissory note generally requires more action. Before all else, a lender can send a demand letter to a borrower, which is an official request for repayment.

If a borrower does not respond, a lender can file a claim in small claims court.

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

A promissory note in Oklahoma can be changed or revoked only if the lender and borrower agree to the amendments. Alterations to promissory notes can occur due to early payments, changes in schedule or interest rates, and similar.

It’s important to note that the amended agreement should clearly stipulate new elements, be in written form, and have both parties sign it. For precise and effective notes and amendments, parties can hire an attorney or check out our promissory note samples. Afterward, they can use adjustable templates on our website to create promissory notes that fit their needs.