How To Sign Oregon Banking Promissory Note Template

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Oregon promise so I know it's given overview of a borrower's legally binding promise to pay back a lender in the state will detail the elements of a promissory note as well as laws specific to the state of Oregon concerning interest rates and signing requirements what is a promissory note a promissory note is a relatively straightforward do-it-yourself document that outlines the terms for the borrowing of money and how the borrower will pay back the funds to a lender which could be a bank or an individual promissory notes are legally binding and are more detailed than a simple IOU form but less comprehensive than a standard alone agreement types of promissory notes promissory notes come in two kinds either secured or unsecured there are advantages and disadvantages to each type of note for both the borrower and the lender in varying situations secured promissory note a secured promissory note is backed by an asset of value such as a vehicle or a home if the borrower does not pay back the loan within the agreed-upon time frame the lender has the right to acquire the property of the borrower unsecured promissory note these notes do not allow the lender to secure an asset for money loaned this means that if the borrower does not satisfy the loan the lender must seek restitution in small claims court or through other legal processes in general lenders may be more inclined to enter into an unsecured agreement with trustworthy borrowers exhibiting higher credit scores or people they know such as friends or family lenders might also charge more interest and could have the possibility to make more money off of unsecured loans because of their higher risk were secured loans post less of a risk interest rates a usury rate a state's usury rate is the maximum amount of interest a lender can charge lenders must be mindful of usury rates as charging a higher interest rate than allowed may incur penalties in Oregon the legal rate of interest is 9% unless another rate is agreed to in writing there is however one exception the maximum chargeable interest on a loan $50,000 or less is 12% per year or 5% more than the discount rate on a 90 day commercial paper at the Federal Reserve Bank in the district where the loan is created whichever is greater signing requirements in Oregon both the borrower and the lender must sign the promissory note a witness is not required to sign but is recommended moreover for loans exceeding $10,000 a notary public is highly recommended