New Jersey Promissory Note

New Jersey's general usury rate is 16% per year for consumer transactions under NJSA 31:1-1. However, licensed lenders, financial institutions, and many commercial transactions are exempt from this cap. Business-to-business loans may carry higher rates if agreed upon in writing.

Under NJSA 2A:14-1, the statute of limitations for written contract claims — including promissory notes — is 6 years from the date of breach or the last payment date. Partial payments or written acknowledgment can reset the clock. Oral loans have a 6-year limitation period as well.

Notarization is not required for a promissory note to be valid. However, for notes secured by real property (a mortgage or deed of trust), the mortgage must be notarized and recorded with the county clerk. Notarizing the note itself helps authenticate it if signatures are disputed.

Yes. Include a specific late fee provision — a flat amount or a percentage of the overdue payment. For consumer notes, late fees should be reasonable and disclosed upfront. For commercial notes, the parties have wide latitude to agree on late charges. Specify the grace period before the late fee applies.