Michigan Promissory Note
Generate a promissory note tailored to Michigan law. Our AI incorporates MI-specific statutory requirements, disclosure obligations, and legal standards into every document.
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Michigan Legal Requirements
Key MI statutes and obligations that apply to your promissory note.
Requirements
- Michigan usury law: maximum 7% for simple contracts; 25% for written notes (MCL 438.31)
- Licensed lenders (banks, credit unions, licensed finance companies) are exempt
- Statute of limitations: 6 years for written contracts (MCL 600.5807)
- Real estate secured notes: mortgage must be recorded with Register of Deeds
- Documentary transfer tax may apply to mortgages securing real property
Restrictions & Limits
- Interest above 25% per year is usurious for non-exempt lenders
- Michigan regulates payday lenders under the Deferred Presentment Service Transactions Act
- Consumer mortgage loans: additional TILA and Michigan Truth in Lending requirements
Official Statute References
Primary Michigan statutes governing this document type.
Michigan Promissory Note FAQ
Common questions about promissory notes under Michigan law.
What is Michigan's usury limit for promissory notes?
Michigan's Interest on Money statute (MCL 438.31) allows parties to agree in writing to interest rates up to 25% per year for most transactions. Without a written agreement, the default rate is 5%. Licensed financial institutions are generally exempt from Michigan usury limits.
How long do I have to collect on a Michigan promissory note?
Michigan's statute of limitations for written contracts is 6 years (MCL 600.5807). The clock starts from the date of default. A demand letter does not toll the limitations period — file suit before the 6-year deadline if the borrower is not paying.
Does a Michigan promissory note need to be notarized?
Notarization is not required for a Michigan 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 Register of Deeds to perfect the lien.
What is the Michigan mortgage recording tax?
Michigan imposes a mortgage recording tax when a mortgage is recorded: $0.75 per $500 of secured debt (with county variations). This tax applies to mortgages securing promissory notes for real property. Budget for this cost when structuring real estate-secured loans in Michigan.
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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.