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DOWNLOAD this Maryland Promissory Note Form to document a transaction involving the borrowing and lending of money in Maryland.  The lender and borrower may agree to the rate of interest as well as the term of the agreement and how the loan will be repaid.  The lender and borrower may also determine whether the loan will be a secured loan or an unsecured loan.

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The Maryland statutes state as follows: “(a)(1) a lender may charge interest at an effective rate of simple interest not in excess of 8 percent per year on the unpaid principal balance of a loan if there is a written agreement signed by the borrower which sets forth the stated rate of interest charged by the lender.  (2) If a loan made under paragraph (1) of this subsection is secured by the pledge of collateral which is a certificate of deposit held by the borrower, the lender may charge interest at a rate not to exceed 2 percent in excess of the rate of interest payable on the certificate of deposit. (3) If a loan made under paragraph (1) of this subsection is secured by the pledge of collateral which is other than a savings account or if such loan is unsecured, the lender may charge a rate of interest not in excess of 18 percent. However, on a loan made on or after July 1, 1982, a lender may charge an effective rate of simple interest not in excess of 24 percent per year on the unpaid principal balance, provided that: (i) If the loan is a renewal or refinancing of a loan made prior to July 1, 1982, the lender complies with § 12-116 of this subtitle; (ii) If the loan includes a provision for a rate of interest which may be adjusted by the lender during the term of the loan, the lender complies with § 12-118 of this subtitle; (iii) Upon the borrower’s default, if the loan is secured by personal property, the lender complies with § 12-115 of this subtitle concerning repossession and redemption of the goods securing the loan; (iv) If the loan is for the purchase of consumer goods, the loan contract complies with § 12-117 of this subtitle; and (v) The loan does not include a balloon payment, unless payment in full is due on demand or in one year or less.  MD Code, Commercial Law, § 12-103

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