Promissory Note requirements in Maine
- Must be in writing and signed by the borrower.
- Must state the principal amount loaned.
- Must include the interest rate (if any) and how it's calculated.
- Must specify the repayment schedule or due date.
- Should include the lender's name and the borrower's name and address.
- Notarization is not required by law, but it's strongly recommended to prove the signature's authenticity.
The process in Maine
- Download a promissory note template or create your own. Ensure it includes all essential terms.
- Fill in the borrower's and lender's full names and addresses.
- Enter the loan amount, interest rate, and repayment terms. Be specific: '10% annual interest, due in 12 monthly payments of $X.'
- Specify the date the note becomes effective and the maturity date.
- Both parties sign the note. If you want extra protection, have the borrower sign in front of a notary public.
- Keep the original. Give a copy to each party.
Download a free promissory note template for Maine now and get your loan agreement in writing today.
Create your promissory noteBudgeting for a Promissory Note
There's no state fee to create a promissory note. You only pay for notarization if you choose to have it notarized; notary fees in Maine are capped at $5 per signature. Attorney fees, if you hire a lawyer to draft a complex note, vary.
Maine Promissory Note: Pre-Start Checklist
Before drafting your Maine promissory note, gather key details and understand local rules to ensure enforceability.
- Confirm the loan amount, interest rate (avoid usury limits), and repayment schedule.
- Identify the borrower and lender with full legal names and addresses.
- Decide if the note should be secured (collateral) or unsecured (no collateral).
- Check if a witness or notary is required—Maine generally doesn't require, but notarization helps prove validity.
- If real estate secures the note, consider recording a mortgage with the county registry of deeds.
- Keep a copy of the signed note and any related loan documents for your records.
FAQs
Does a promissory note need to be notarized in Maine?
No, Maine law does not require notarization for a promissory note to be valid. However, having the borrower's signature notarized can help prove the note is authentic if there's a dispute.
Can I use a promissory note for a loan to a family member?
Yes. A promissory note is a good tool for personal loans. It makes the terms clear and can prevent misunderstandings. Even between family, a written note is smart.
What happens if the borrower doesn't repay?
If the borrower defaults, the lender can sue to collect the debt. A promissory note is evidence of the agreement. You may be able to get a judgment and garnish wages or place a lien on property.
What's the difference between a promissory note and a loan agreement?
A promissory note is a simple promise to repay. A loan agreement is more detailed, covering conditions, collateral, and borrower representations. For most personal loans, a promissory note is sufficient.