California Promissory Note
Generate a promissory note tailored to California law. Our AI incorporates CA-specific statutory requirements, disclosure obligations, and legal standards into every document.
One-time · instant download
- California statutory requirements
- AI-powered Q&A generation
- Instant PDF & DOCX
- Attorney-reviewed framework
- 30-day re-download access
California Legal Requirements
Key CA statutes and obligations that apply to your promissory note.
Requirements
- No specific form required — must include parties, amount, interest rate, repayment terms
- California usury limit: 10% per year for personal loans from non-exempt lenders
- Licensed lenders (banks, credit unions) are exempt from usury limits
- Secured promissory notes for real estate must be recorded
- Statute of limitations: 4 years from default (CCP § 337)
Restrictions & Limits
- Interest rates above 10% from unlicensed lenders are usurious and may void the contract
- Balloon payments and negative amortization must be clearly disclosed
- Collection after 4 years from default is barred by statute of limitations
Official Statute References
Primary California statutes governing this document type.
California Promissory Note FAQ
Common questions about promissory notes under California law.
What is California's usury limit for promissory notes?
California limits interest rates on personal loans from unlicensed lenders to 10% per year. Commercial loans between businesses have different rules — the usury laws are complex. Licensed lenders (banks, finance companies) are generally exempt.
How long do I have to collect on a California promissory note?
California Code of Civil Procedure § 337 gives you 4 years from the date of default to file suit on a written promissory note. After this statute of limitations expires, the debt is time-barred.
Does a California promissory note need to be notarized?
Notarization is not required for a promissory note to be enforceable. However, if the note is secured by real estate and you want to record it, notarization of the deed of trust or mortgage is required.
Can I charge compound interest on a California promissory note?
Yes, if agreed in writing and within the usury limit. The note should clearly specify whether interest is simple or compound, and the compounding frequency (daily, monthly, annually).
Ready to Create Your California Promissory Note?
Our AI generates a CA-compliant promissory note in minutes — incorporating the statutory requirements above into every clause.
Promissory Note by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.