Utah Promissory Note Template [PDF + Download]

A Utah promissory note is a written financial document in which a borrower promises to pay a certain amount of money to a lender. The note includes the principal amount, maturity date, interest rates, and specific repayment terms.

This official contract is legally binding and can formalize loan agreements in Utah. You can create promissory notes on your own or appoint a lawyer for this.

Before you decide on how to create this document, read on to familiarize yourself with the meaning of promissory notes, the signing requirements, interest rates, and enforcement and revocation procedures.

Types of Promissory Notes in Utah

You can use two Utah promissory note variants—secured and unsecured. The main difference between these is how the lender can enforce each note.

Let’s see the details:

Types of Promissory Notes

#1. Unsecured Promissory Note

Unsecured or simple promissory notes outline the repayment terms of a money-lending transaction. This type of promissory note has legal force, but it does not guarantee reimbursement to the lender if the borrower defaults.

In other words, the lender must file a claim in small claims court to recover the debt, as there is no collateral in a Utah repayment agreement. If there were collateral, the lender could take an asset or property if the borrower cannot pay off the loan amount, with or without interest rates.

#2. Secured Promissory Note

Secured promissory notes are signed documents stipulating the borrower’s repayment procedure to the lender. It contains deadlines and penalties for late or missing payments, but most importantly, such a note states collateral.

Specifically, in case of default, the lender can claim a piece of the borrower’s property or asset (e.g., a house or vehicle) featured in a Utah debt agreement. Because of this, secured promissory notes are easier to enforce.

Signing Requirements for Promissory Notes in Utah

Before courts deem promissory notes legal and enforceable, the creator or issuer must make one according to the promissory note Utah requirements.

These are the requirements:

Signing Requirements

The note must be in written form.
It should include information about both parties (names, contact details, addresses, etc.)
The loan sum, payback terms, interest rates, and collateral for secured notes must be specified.
Both parties must sign the note.

You can include co-signers to strengthen your notes. A co-signer backs the borrower, ensuring that the borrower will repay the debt by making payments instead of them if necessary, thus serving as a repayment guarantee.

Moreover, notarizing your document implies impartial witnesses who attest that the signers are aware of the contract’s contents and that they are not signing under duress. We recommend having a notary public notarize your document for loans worth $10,000 or more for an added layer of security.

Statutory Considerations for Utah Promissory Notes

Lenders must strictly adhere to Title 70A, Chapter 3 of the Utah Code when crafting a valid Utah promissory note, as it outlines the interest rate limits. This is important because respecting the maximum interest rate can prevent penalties and keep the notes enforceable.

Let’s check the limits for the available loan types in this state:

Type of Loan	Maximum Interest Rate
With a contract	No limit
Without a contract (§ 15-1-1(2)). 10%	10%
Judgments (general)	If not otherwise provided by law, the district, justice, and Business and Chancery courts must bear interest at the federal post-judgment interest rate plus 2%
Judgments under $10,00	Must bear interest from the date on which the district, justice, and Business and Chancery courts enter the judgment at $10% plus the federal post-judgment interest rate in effect

While Utah law allows you to make personal, business, real estate, and other loans, it is always important to stick to legal requirements, including maximum interest rates. The main goal is for notes to serve their purpose and protect the interests of all parties.

How To Enforce a Promissory Note in Utah

To enforce a promissory note in Utah, the lender can acquire the borrower’s property or file a claim in small claims court according to the type of note they have. Before all else, the lending party can send an official demand note to the borrower as a formal request for repayment.

If the borrower does not respond, the lender can file a claim in small claims court, the most common judicial way to enforce an unsecured promissory note. An enforceable promissory note in Utah is valid in small claim courts if the loan amount does not exceed the limit proposed by the state law.

Secured promissory notes imply the acquisition of property or assets in default cases. Notably, claiming the property is possible only if the collateral is clearly stated, with its registered numbers and proof that the borrower is entitled to it.

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

A promissory note in Utah can be changed or revoked if both parties fully consent to modification or cancellation.

For instance, the lender may reduce the loan amount if the borrower cannot pay the principal. Some other amendments also imply a change of interest rates or revocation due to the borrower’s disability, passing, or early payment.

Parties must customize promissory notes to state all modifications explicitly. The modified note must be in writing, and both the lender and the borrower must sign it.

Ready-made promissory note templates are useful for creating new notes or modifying original ones. However, issuers should examine Utah promissory note samples and customize templates to fit the contract’s needs and abide by Utah law.