California Promissory Note Template

California rules built into this template

• Interest limit: under California law the maximum rate for many non-exempt loans between private parties is generally 10% per year for loans primarily for personal, family, or household purposes made by non-exempt lenders (Cal. Const. art. XV, § 1).
• Savings clause: any interest above the lawful maximum is reduced and applied to principal or refunded.
• Licensed lenders, business loans, and larger loans may be exempt or subject to different limits.

What the Promissory Note includes

1. Payment
2. Interest
3. Maximum Lawful Rate
4. Prepayment
5. Application of Payments
6. Events of Default
7. Remedies
8. Collection Costs
9. Security
10. Waivers
11. Transfer
12. Notices
13. General Provisions

Frequently asked questions

What is the maximum interest rate on a private loan in California?

For many non-exempt loans between private parties, California law generally limits interest to 10% per year for loans primarily for personal, family, or household purposes made by non-exempt lenders (Cal. Const. art. XV, § 1). Exemptions and different limits may apply.

Does a California promissory note need to be notarized?

A promissory note is generally enforceable when signed by the borrower; notarization is not usually required, though it can help prove the signature. Notes secured by real estate follow separate recording rules.

What is the difference between the Standard and Professional Promissory Note?

The Standard edition is a complete, state-aware Promissory Note for common situations. The Professional edition adds longer clause coverage, schedules, and optional modules for more complex matters. You can preview either edition free before you pay.

Promissory Note templates for other states

• Texas
• Florida
• New York
• Pennsylvania
• Illinois
• Ohio
• Georgia
• North Carolina
• Michigan
• All states and countries