New York Promissory Note (2026)
A New York promissory note records a loan: amount, interest, payments, late fee and default. 16% per year (General Obligations Law §5-501; Banking Law §14-a); a loan above it is void (GOL §5-511). Over 25% is criminal usury (Penal Law §190.40). An individual borrower cannot raise civil usury on a loan over $250,000.
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- Secured Promissory NoteThe borrower pledges property (a car, equipment) as security for the loan.
- Unsecured Promissory NoteA personal promise to repay, with no property pledged — common between friends and family.
New York promissory note: key facts
- Maximum interest (usury limit)
- 16% per year (General Obligations Law §5-501; Banking Law §14-a); a loan above it is void (GOL §5-511). Over 25% is criminal usury (Penal Law §190.40). An individual borrower cannot raise civil usury on a loan over $250,000.
- Legal rate when the note sets none
- 9% per year (CPLR §5004); 2% on a consumer-debt judgment against an individual.
- Time limit to sue
- New York: 6 years for a written contract (CPLR §213(2)).
- Notary required?
- No requirement was found for a simple promissory note; notarizing is optional. A lien on real estate needs a separate mortgage or deed of trust.
- Late fees
- The 16% limit applies to interest, not to a late fee, but a late fee equal to more than 25% a year may be treated as criminal usury (NY DFS opinion).
Official sources: NY Department of Financial Services — usury opinion · NY Courts — statute of limitations chart · Last reviewed: October 2026
Frequently asked questions
- What is the maximum interest rate on a personal loan in New York?
- 16% per year (General Obligations Law §5-501; Banking Law §14-a); a loan above it is void (GOL §5-511). Over 25% is criminal usury (Penal Law §190.40). An individual borrower cannot raise civil usury on a loan over $250,000. Our form blocks rates above the safe limit for your state.
- Does a promissory note need to be notarized in New York?
- No requirement was found for a simple promissory note; notarizing is optional. A lien on real estate needs a separate mortgage or deed of trust.
- Secured or unsecured: which one do I need?
- Use a secured note when the borrower pledges property, such as a car or equipment, that the lender can enforce against after a default. Use an unsecured note for a simple personal promise to repay.
- How long do I have to sue on an unpaid note in New York?
- New York: 6 years for a written contract (CPLR §213(2)).
- Can I get it in Spanish?
- Yes. You sign the English note and also receive a Spanish reference translation and Spanish instructions.
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