Kansas Promissory Note

K.S.A. §16-207 sets a general usury cap of 15% per year but allows parties to contract in writing for any higher rate. For consumer loans, the contracting exception still applies but is scrutinized more closely. Commercial loans between businesses may set any rate if agreed in writing. Always express the rate as an annual percentage rate (APR) to avoid ambiguity.

For personal property, file a UCC-1 Financing Statement with the Kansas Secretary of State (online, $10–$20 fee). For real property, record a mortgage with the Register of Deeds in the county where the property is located. Perfect promptly — Kansas uses a first-to-file system for priority among competing creditors.

Kansas Code §60-512 provides a 5-year statute of limitations for written contracts, including promissory notes. The clock starts running from the date of default or the maturity date of the note. After 5 years, the debt is time-barred unless the borrower made a partial payment or written acknowledgment restarting the limitations period.

Attorney's fees clauses in promissory notes are enforceable in Kansas if expressly stated. Without a fee clause, each party bears their own fees under the American Rule. Include language such as: 'In the event of default, the maker shall pay the lender's reasonable attorney's fees and costs incurred in collection.' Courts will award fees up to the amount stated as reasonable.