Illinois Promissory Note
Generate a promissory note tailored to Illinois law. Our AI incorporates IL-specific statutory requirements, disclosure obligations, and legal standards into every document.
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Illinois Legal Requirements
Key IL statutes and obligations that apply to your promissory note.
Requirements
- Illinois Interest Act (815 ILCS 205): governs interest rates on loans
- Default interest rate: 5% per year if no rate is stated
- Written notes: parties can agree to any rate not exceeding 9% unless exempt
- Licensed lenders (banks, credit unions) are exempt from Illinois usury limits
- Statute of limitations: 10 years on written instruments (735 ILCS 5/13-206) — reduced to 5 years effective 2024 for newly filed cases
Restrictions & Limits
- Interest exceeding 9% from unlicensed lenders may be usurious
- Payday loans: Illinois Payday Loan Reform Act caps rates at 99% APR (though still high)
- Consumer installment loans: additional Consumer Installment Loan Act requirements
Official Statute References
Primary Illinois statutes governing this document type.
Illinois Promissory Note FAQ
Common questions about promissory notes under Illinois law.
What interest rate can I charge on an Illinois promissory note?
The Illinois Interest Act allows parties to agree to any rate in a written promissory note, but unlicensed lenders are generally limited to 9% per year for personal loans. Commercial loans between businesses are less restricted. Licensed financial institutions are exempt from usury limits.
How long do I have to collect on an Illinois promissory note?
Illinois traditionally provided a 10-year statute of limitations for written contracts (735 ILCS 5/13-206). For promissory notes signed after January 1, 2024, the limitations period is 5 years under recent legislative reforms. Verify the applicable period for your specific note.
Does an Illinois promissory note need to be notarized?
Notarization is not required for an Illinois promissory note to be enforceable. However, if the note is secured by real estate (via a mortgage), the mortgage must be acknowledged before a notary and recorded with the county recorder's office to perfect the lien.
What is the default interest rate in Illinois if no rate is specified?
Under the Illinois Interest Act (815 ILCS 205/4), if a written contract does not specify an interest rate, the legal rate is 5% per year. For judgments and other legally compelled obligations, the rate is also 9% per year unless a court orders otherwise.
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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.