Free Florida Promissory Note Template

A Florida promissory note is a signed, written promise to repay money on agreed terms. In Florida, the writing carries extra weight, and most notes also owe documentary stamp tax.

Chapter 687 of the Florida Statutes covers interest and lending practices, and the Florida Department of Revenue administers the stamp tax on notes.

Credit Agreements Must Be in Writing

Under § 687.0304(2), a debtor may not maintain an action on a credit agreement unless it meets four conditions:

• It is in writing
• It expresses consideration
• It sets out the relevant terms and conditions
• It is signed by both the creditor and the debtor

The same section adds that a credit agreement can’t be implied from the relationship between creditor and debtor.

Documentary Stamp Tax

According to the Florida Department of Revenue, promissory notes signed or delivered in Florida, including renewals, are subject to documentary stamp tax. The rate is 35 cents per $100, or portion thereof, of the obligation. However, the tax on a note is capped at $2,450. Tax on a recorded mortgage is paid to the clerk of court at recording. By contrast, tax on an unrecorded document goes directly to the department. Some notes are exempt under § 201.09(1). Rates can change, so confirm the current figures with the department before you sign.

Receipts for Secured Loans

Section 687.08 applies when money is lent on security. The lender must give a dated, signed receipt for each payment, showing the amount and whether it went to principal or interest. An annual statement can replace receipts, except for cash payments or when the borrower asks in writing. A lender who refuses on demand forfeits the entire interest.

Attorney’s Fees

Under § 687.06, a court needn’t find a note’s attorney’s fee reasonable if it’s no more than 10% of the principal. Also, § 687.05 says a fee provision doesn’t subject the note to interest limits.

For most loans, 18% a year simple interest. Sections 687.02(1) and 687.03(1) treat a higher rate as usurious. When a loan exceeds $500,000, the limit is instead the rate in § 687.071.

Fees can count too. Under § 687.03(3), advance charges taken into account as interest are spread over the stated term and added to the stated rate.

Criminal Usury

Section 687.071 sets criminal tiers for willfully and knowingly charging interest:

• Over 25% but not over 45% a year — a second-degree misdemeanor
• Over 45% a year — a third-degree felony

Credit extended in violation of that section isn’t an enforceable debt in Florida courts.

Civil Penalty

Under § 687.04, a willful violation of § 687.03 forfeits the entire interest, and only the principal can be enforced. If usurious interest was taken, the lender forfeits double that amount to the borrower. A lender can avoid these penalties by notifying the borrower and refunding the overcharge, with interest, before the borrower acts.

Tip: Add up every fee along with the rate before you sign your Florida promissory note. A note that looks fine at 17% can cross the line once charges are included.

Signing in Florida involves a tax step as well as the signatures. Follow these steps:

1. Set an annual rate at or below the limit, counting any advance charges.
2. Put every term in writing, and have both the lender and the borrower sign.
3. Calculate the documentary stamp tax, and plan who will pay it.
4. Pay the tax to the clerk of court if a mortgage is recorded, or directly to the Department of Revenue if nothing is recorded.
5. If the loan is secured, set up a way to give receipts or annual statements.
6. Give each party a copy, and keep the original somewhere safe.

Most terms match any note. For Florida, add the details that the writing requirement and the tax depend on.

• Lender and borrower names and addresses
• Principal amount
• Annual interest rate and any fees
• Consideration for the loan
• Payment schedule and due date
• Collateral, if secured
• Attorney’s fee terms
• Signatures of both lender and borrower

Start your Florida promissory note template with Document Genius’s step-by-step questionnaire, and have it ready to sign in minutes.