Texas Promissory Note
Generate a promissory note tailored to Texas law. Our AI incorporates TX-specific statutory requirements, disclosure obligations, and legal standards into every document.
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Texas Legal Requirements
Key TX statutes and obligations that apply to your promissory note.
Requirements
- Texas has no general usury limit for commercial transactions between businesses
- Consumer loans: Texas Constitution Article XVI § 11 — maximum 10% for consumer transactions
- Licensed lenders can charge higher rates under Texas Finance Code
- Statute of limitations: 4 years for written contracts (CPRC § 16.004)
- No requirement to record a promissory note unless secured by real estate
Restrictions & Limits
- Consumer interest above 10% requires a licensed lender
- Balloon payment loans require clear disclosure
- Texas Home Equity loans have additional Constitutional restrictions
Official Statute References
Primary Texas statutes governing this document type.
Texas Promissory Note FAQ
Common questions about promissory notes under Texas law.
What is Texas's usury limit for promissory notes?
Texas Constitution Article XVI § 11 sets a 10% annual interest rate ceiling for consumer transactions with unlicensed lenders. Commercial transactions between businesses are generally not subject to this limit.
How long do I have to sue on a Texas promissory note?
Texas Civil Practice & Remedies Code § 16.004 gives 4 years from the date of default to file suit on a written promissory note. The limitations period begins running when the note becomes due.
Does a Texas promissory note need to be witnessed or notarized?
No. A promissory note does not need witnesses or notarization to be enforceable in Texas. However, if the note is secured by real estate (via a deed of trust), the deed of trust must be notarized and recorded.
Can I include a prepayment penalty in a Texas promissory note?
Yes, prepayment penalties are generally enforceable in Texas commercial notes. However, for residential mortgage notes, prepayment penalties are restricted by federal law and Texas Finance Code provisions.
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Promissory Note by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.