Alabama Promissory Note PDF
Alabama at a glance: Usury Limit: 8% per year (loans under $2,000) · Default Legal Rate: 6% per year · Governing Law: Ala. Code § 8-8-1
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Promissory Notes in Alabama
Alabama promissory notes are governed by Chapter 8 of the Alabama Code. The legal rate of interest defaults to 6% per year if not specified, but parties can contract in writing for an interest rate of up to 8% per year for standard loans under $2,000.
For loans exceeding $2,000, there is no statutory limit, provided the rate is agreed to in writing.
Alabama Promissory Note — Quick Reference
| Requirement | Alabama Rule |
|---|---|
| Usury Limit | 8% per year (loans under $2,000) |
| Default Legal Rate | 6% per year |
| Governing Law | Ala. Code § 8-8-1 |
Alabama Legal Requirements
- Interest rate cannot exceed 8% per year for loans under $2,000 unless exempt.
- Agreement must be in writing and signed by the debtor.
Alabama Governing Laws
Read the full text of these laws at Cornell Law School's Alabama legal resources or your state legislature's official website.