Tennessee Promissory Note Guide

Promissory Note requirements in Tennessee

The note must be in writing and signed by the borrower.
It must state the principal amount, interest rate, and repayment schedule.
Include the date, names, and addresses of both parties.
For real estate-secured notes, a witness is required for the signature.
Notarization is not required for most notes but recommended for legal proof.
If secured by real estate, file the deed of trust with the county register.

The process in Tennessee

Download a promissory note template or write your own.
Fill in the borrower's and lender's names and contact info.
Specify the loan amount, interest rate, and repayment plan (installments or lump sum).
Add late fees and default terms if you want them.
Have the borrower sign. For real estate loans, get a witness to sign too.
Keep the original. File the deed of trust if you used real property as collateral.

Create a personalized, legally compliant promissory note for Tennessee using our template today.

Budgeting for a Promissory Note

There is no state fee to create a promissory note. If you file a deed of trust, expect a county recording fee, usually under $50. Notary costs are optional and typically $5 to $10 per signature.

Before You Draft a Tennessee Promissory Note

A well-prepared note protects both lender and borrower. Here’s what to line up before you write.

Confirm the principal amount, interest rate (if any), and repayment schedule in writing.
Check whether your loan triggers Tennessee's usury limits; keep the rate reasonable or consult a lawyer.
Decide if the note is secured by collateral; if so, you may need to file a UCC financing statement with the Tennessee Secretary of State.
For real estate-secured loans, be aware that a deed of trust or mortgage must be recorded in the county register's office.
Prepare a written repayment schedule and default terms, including late fees (keep within state law).
Identify all parties with full legal names and addresses, and have the note signed and dated; a witness or notary is not required but can strengthen enforceability.

FAQs

Does a promissory note need to be notarized in Tennessee?

No. Notarization is not required for the note itself. But for a deed of trust securing real estate, the deed of trust must be notarized to be recorded.

What is the difference between a promissory note and a loan agreement?

A promissory note is a promise to repay; it's simpler. A loan agreement is more detailed, covering rights and responsibilities. A promissory note is often used within a loan agreement.

Is an IOU the same as a promissory note?

No. An IOU just acknowledges a debt. A promissory note includes repayment terms and creates a legal obligation.

How do I enforce a promissory note in Tennessee?

If the borrower defaults, you can sue in court. The note is the evidence of the debt. If secured, you can foreclose after following the deed of trust terms.