Colorado Promissory Note: Everything You Need to Know

Written promise to pay a debt

Sales Tax: 2.9%Notary: $5-$10Witnesses: 1

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PROMISSORY NOTE
State of Colorado

Principal Amount: $[AMOUNT]
Date: [DATE]

FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay to [LENDER NAME] ("Lender"), or order, the principal sum of $[AMOUNT], together with interest.

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS]
City, State, ZIP: [CITY], CO [ZIP]

LENDER:
Name: [LENDER NAME]
Address: [ADDRESS]
City, State, ZIP: [CITY], CO [ZIP]

TERMS:
1. Interest Rate: [RATE]% per annum
2. Payment Schedule: [SCHEDULE]
3. Payment Amount: $[AMOUNT] per [PERIOD]
4. Due Date: [DATE]

LATE PAYMENT: A late fee of $[AMOUNT] will be charged for payments more than [DAYS] days overdue.

DEFAULT: If Borrower defaults, Lender may declare the entire unpaid balance immediately due and payable.

PREPAYMENT: Borrower may prepay without penalty.

GOVERNING LAW: This note is governed by Colorado law (CO Statutes).

BORROWER SIGNATURE: _____________________ DATE: _____
    

FAQ: Promissory Note in Colorado

Is a Promissory Note required in Colorado?

Yes, in Colorado, a Promissory Note is required for most transactions of this type. Under Colorado State Code, the document must include all parties' information, be signed, and witnessed by at least one individual. Failure to use a proper Promissory Note may result in legal complications.

Does a Promissory Note need to be notarized in Colorado?

Notarization requirements in Colorado (CO) vary by transaction type. Notary fees in the state typically range from $5-$10. While not always mandatory, notarization adds an extra layer of legal protection and is recommended for high-value transactions.

What are the tax implications of a Promissory Note in Colorado?

Colorado has a base sales tax rate of 2.9%. Depending on the type of transaction documented in your Promissory Note, additional local taxes may apply. Consult with a Colorado tax professional for specific guidance on your situation.

Is a promissory note legally binding?

Yes, a properly executed promissory note is a legally binding contract. It must include the principal amount, interest rate (if any), payment terms, maturity date, and signatures of the borrower. Some states require notarization for certain amounts.

What happens if a borrower defaults on a promissory note?

If a borrower defaults, the lender can demand immediate payment of the full balance, charge late fees as specified in the note, report to credit bureaus, and take legal action to collect the debt. The note should specify the remedies available upon default.

Can I charge any interest rate on a promissory note?

No, interest rates are subject to state usury laws, which set maximum allowable rates. Charging interest above the legal limit can result in penalties and may make the entire note unenforceable. Check your state's usury limits.

JRJ
Reviewed & Fact-Checked

Jennifer Rodriguez, J.D.

Estate Planning Attorney

Licensed in 5 states, 12+ years experience

Focuses on wills, trusts, and power of attorney documents

This Promissory Note template for Colorado has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Colorado Promissory Note Requirements

Review the following requirements to ensure your Promissory Note is legally valid in Colorado.

Interest rate must comply with usury laws
Payment schedule required
Default terms must be specified
Borrower and lender signatures required
Notarization recommended
Collateral description if secured
Late payment penalty terms
Prepayment clause recommended
Governing law stated
Witness signature recommended

Colorado Notarization

While notarization may not be required in Colorado, it is recommended. Fees range from $5-$10.

Before You Sign

Review all information carefully. In Colorado, a 2.9% sales tax may apply.

Legal Protection

Keep copies of all signed documents. Colorado law requires all parties to receive copies of executed documents.

Colorado Filing Deadlines

Check Colorado deadlines for filing or recording this document with the appropriate county clerk's office.

Colorado Promissory Note Legal Guide

In Colorado, this document is legally binding under local statutes and provides essential protection for both parties involved in the transaction.

Pursuant to Colorado State Code in Colorado, this Promissory Note must meet specific criteria. The applicable sales tax is 2.9%. Notarization, which costs $5-$10 in CO, may be required depending on the transaction type. 1 witness is needed.

This professionally drafted form provides peace of mind knowing you're compliant with all Colorado legal requirements.

borrowerlenderprincipal amountinterest ratepayment scheduleloan agreementpromissory note formdebt obligation
Whether you're a first-time promissory note user or a seasoned professional in Colorado, understanding the legal nuances of this document is essential. Colorado (CO) has specific statutes that govern how this form must be prepared, signed, and filed.

Your Colorado Filing Guide

After downloading, take your time filling in each section. CO statutes require that all information be accurate and current. Once signed by all parties, determine whether Colorado requires you to file the document with a government office, record it with the county, or simply retain it for your records.

Avoid These Common Mistakes

Colorado attorneys frequently see these errors:
- Using an out-of-state template that doesn't comply with CO law
- Forgetting to include required witness signatures
- Leaving fields blank or using abbreviations
- Not retaining copies for personal records
- Failing to update documents when Colorado law changes

Enforceability in Colorado

A Promissory Note that meets all CO requirements is fully enforceable in Colorado. Courts in Colorado have consistently upheld documents that demonstrate clear intent, proper execution, and compliance with state formalities. Keep your original signed copy in a secure location.

Legal Standards in Colorado

Under CO state code, your Promissory Note must contain several mandatory elements. Colorado courts have consistently held that documents missing key provisions — such as proper identification of parties or adequate descriptions — may be challenged or voided entirely.

Promissory Note Costs in Colorado

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)Colorado standard rate: $5-$10
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in Colorado
Sales Tax2.9%Colorado base rate (local taxes may apply)
Witness Requirement1 witnessSingle witness sufficient
Our TemplateFREEDownload instantly, no cost
Fees shown are Colorado-specific estimates. Contact your local office for exact pricing.

Where to File Your Promissory Note in Colorado

Visit your local County Clerk office to file or notarize your Promissory Note.

Colorado County Clerk

Colorado Capital

Main Government Building, Colorado

District County Clerk

Colorado Metro Area

County Courthouse, CO

Document Information

Document
Promissory Note
State
Colorado (CO)
Category
Financial
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
2.9%
Notary Fee
$5-$10

Colorado Legal Requirements

Governing Statute:

State Commercial Code

  • Must be in writing for amounts over $500
  • Clear payment terms required
  • Interest rate must comply with usury laws
  • Signature of borrower required

📊 Promissory Note vs. Loan Agreement in Colorado

Promissory Note
Loan Agreement
Promissory Note is a promise to pay
Loan Agreement includes detailed terms
Colorado usury laws limit interest rates
Notarization in Colorado: $5-$10
Comparison based on Colorado state law. Requirements may vary by county.

Legal Disclaimer

This template is for informational purposes only and does not constitute legal advice. Laws in Colorado may change. Consult a licensed attorney for advice specific to your situation.