Idaho Promissory Note
Generate a promissory note tailored to Idaho law. Our AI incorporates ID-specific statutory requirements, disclosure obligations, and legal standards into every document.
One-time · instant download
- Idaho statutory requirements
- AI-powered Q&A generation
- Instant PDF & DOCX
- Attorney-reviewed framework
- 30-day re-download access
Idaho Legal Requirements
Key ID statutes and obligations that apply to your promissory note.
Requirements
- Idaho has no general usury cap for commercial loans; consumer loans: 12% maximum unless licensed
- Note must specify principal, interest rate, repayment terms, and default provisions
- Consumer loan usury governed by Idaho Code §28-42-401
- UCC Article 3 (Idaho Code §28-3-101 et seq.) governs negotiable instruments
- Secured notes: UCC-1 filing with Idaho Secretary of State for personal property collateral
Restrictions & Limits
- Interest rate must be stated as a specific number or calculation method — 'market rate' is insufficient
- Consumer notes over 12% APR require lender licensing
- Confession of judgment clauses are disfavored in Idaho courts
- Prepayment penalties must be expressly stated; courts construe ambiguities against the lender
- Late fees must be a stated amount or percentage, not an open-ended penalty
Official Statute References
Primary Idaho statutes governing this document type.
Idaho Promissory Note FAQ
Common questions about promissory notes under Idaho law.
What is Idaho's interest rate limit for loans?
Idaho Code §28-42-401 caps consumer loan interest at 12% per year for unlicensed lenders. Commercial loans between businesses have no statutory cap. If you charge more than 12% to a consumer without a license, the interest is unenforceable (but the principal debt remains). Always confirm whether the borrower is a consumer or a business.
How do I perfect a security interest in Idaho?
File a UCC-1 Financing Statement with the Idaho Secretary of State for personal property collateral (equipment, inventory, accounts receivable). For real property, record a deed of trust or mortgage with the county recorder in the county where the property is located. Perfect the interest promptly — priority is generally first-to-file.
What notice is required before declaring a default in Idaho?
Include a notice-and-cure provision in the note: give the borrower 10–30 days written notice of default before accelerating. Idaho courts look favorably on lenders who follow the note's procedures precisely. For secured transactions, the Idaho UCC requires commercially reasonable disposition of collateral after repossession.
Is a promissory note enforceable without notarization in Idaho?
Yes. A promissory note does not require notarization to be enforceable in Idaho. As a negotiable instrument under UCC Article 3, it needs only to be in writing, signed by the maker, and contain an unconditional promise to pay a sum certain. Notarization of the accompanying deed of trust or mortgage is required for recording with the county recorder.
Ready to Create Your Idaho Promissory Note?
Our AI generates a ID-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.