Arkansas Promissory Note

Arkansas's Amendment 60 to the state constitution caps interest rates on consumer loans at 17% per annum. This is a constitutional provision, not just a statute. Loans charging more than 17% are usurious, and courts may void the interest obligation entirely, leaving only the principal to be repaid.

Arkansas's statute of limitations for written contracts, including promissory notes, is 5 years from the date the cause of action arises (§16-56-111). For demand notes, the limitations period starts when demand is made. Partial payments or written acknowledgments of the debt can restart the clock.

The Arkansas constitutional limit primarily targets consumer loans. Commercial transactions between sophisticated parties generally have more flexibility. However, the constitutional language is broad, and parties should consult an Arkansas attorney for high-interest commercial lending arrangements to assess risk.

Notarization is not required for a promissory note to be legally valid in Arkansas. However, notarization adds evidentiary weight and is recommended for large-dollar notes. Notes secured by real property require notarization for recording as mortgages or deeds of trust.