Promissory Note requirements in New Hampshire
- Two parties: the borrower (who owes money) and the lender (who gives money).
- Clear amount of money loaned, in dollars and cents.
- Interest rate, either fixed or variable. If none, state 0%.
- Repayment schedule, such as monthly payments or a lump sum due date.
- Date the loan starts and the final due date.
- Signatures from both parties. In New Hampshire, a witness is suggested but not always required for a simple note. A notary is required if you plan to record the note as a lien on real estate.
The process in New Hampshire
- Download a New Hampshire promissory note template online. Make sure it includes all required sections.
- Fill in the full names and addresses of both you and the borrower.
- Write the principal amount, interest rate, and payment terms. Be specific.
- Review New Hampshire laws on usury (maximum interest) if you charge high interest. Check current limits.
- Print the note. Both parties must sign and date it. Get a witness signature if possible, even if not required.
- If you want to secure the loan with property, have the note notarized and then file it at the county registry of deeds.
Download your free New Hampshire promissory note template now and protect your loan.
Create your promissory noteBudgeting for a Promissory Note
A basic promissory note is free if you use a template. Hiring a lawyer to draft a custom note runs about $200–$500. Notarization costs a few dollars per signature, typically $5–$10. If you record the note at the registry of deeds, expect a recording fee, usually around $25–$50.
Before You Start: NH Promissory Note Checklist
A solid promissory note protects both lender and borrower in New Hampshire. Use this checklist to gather details and avoid common mistakes before you write your note.
- Confirm exact loan amount, interest rate (if any), and repayment schedule—be precise to prevent disputes.
- Identify all parties by full legal names and addresses; include co-signers if needed for added security.
- Decide whether you need a witness or notarization—New Hampshire does not strictly require a notary, but notarizing can strengthen enforceability.
- Review New Hampshire usury laws to ensure your interest rate is legal; check current limits for personal loans.
- Have the borrower’s Social Security number or tax ID ready for identification, though you may omit it on the final note for privacy.
- Consider whether the loan is secured by collateral—if so, list it clearly and check for any UCC filing requirements (e.g., with the NH Secretary of State).
FAQs
Is a promissory note required to be notarized in New Hampshire?
Not for most personal loans. A notary is only required if you plan to record the note to create a lien on property. Even if not required, notarization adds credibility and helps prevent disputes.
What is the difference between a promissory note and an IOU?
An IOU just acknowledges that money is owed. A promissory note includes repayment terms, interest, and payment dates. It's more detailed and enforceable.
Can I use a promissory note for a personal loan to a friend?
Yes. In fact, it's smart. It makes the loan official and reduces conflicts. Even family loans should have one.
What happens if the borrower defaults in New Hampshire?
You can sue in small claims court for amounts under $10,000. For larger sums, go to civil court. A signed promissory note is strong evidence.