LOCAL RULES

British Columbia promissory note requirements

Your British Columbia promissory note has 8 rules to meet. ReportDraft puts every one on your checklist and checks your draft before you sign.

  • 2 years to sue from discovery, 15 years at most
  • Civil Resolution Tribunal up to 5,000 dollars, Small Claims up to 35,000
  • A demand loan counted from the missed demand (s. 14)
Start free: fill in yours

Promissory Notes from C$29 a month. 14-day free trial with 3 notes and up to 5 template downloads. Card required, nothing charged today, cancel anytime. Need just one? One promissory note for C$39, no subscription.

A promissory note in British Columbia follows the federal Bills of Exchange Act and Interest Act, listed on this page. British Columbia's own law sets how long the lender has to sue on it: 2 years, and for a note payable on demand, counted only from the first missed payment after a demand. Here is each provincial rule with its source.

Last reviewed November 3, 2026 against the official sources listed below.

Promissory noteBRITISH COLUMBIA / FREE CALCULATOR

Repayment schedule

PaymentDateAmountInterestPrincipalBalance
1December 1, 2026$1,010.02$15.00$995.02$2,004.98
2January 1, 2027$1,010.02$10.02$1,000.00$1,004.98
3February 1, 2027$1,010.00$5.02$1,004.98$0.00
Totals$3,030.04$30.04$3,000.00

3 monthly payments of $1,010.02, the last adjusted to the cent. Interest at 6% a year, calculated monthly on the unpaid balance.

Checks for the lender (not printed on the note)

WhatResultRule
Yearly rate stated on the note6% a year (effective 6.17% with monthly compounding): a rate stated only by the month or week would be capped at 5% a yearInterest Act s. 4
Criminal interest rateUnder the limit of 35% a year (6.17%), counting all fees and charges as interestCriminal Code s. 347
Last day to sue if the final payment is missedFebruary 2, 2029 (2 years from the day after the final payment on February 1, 2027); each earlier missed payment runs from its own dateLimitation Act s. 6 (1), 8
A part payment or a signed written acknowledgementUnder the Limitation Act, starts the period again from that day if made before it runs outLimitation Act s. 24 (1), (6), (7)
Where to file for this amountCivil Resolution Tribunal (small claims): claims up to $5,000, not counting interest and costsCivil Resolution Tribunal Act s. 118; B.C. Reg. 232/2018 s. 3
Put these details in my promissory note

Sample figures. Change them to work out your own, no sign-up. Then start free and your promissory note opens with these details filled in: 14-day trial, nothing charged today.

What British Columbia requires

  • A court proceeding on a claim must not be started more than 2 years after the day the claim is discovered: the day the claimant knew or reasonably ought to have known of the loss, who caused it and that a court proceeding would be an appropriate way to seek a remedyLimitation Act, s. 6 (1) and 8
  • The Provincial Court hears claims for debt or damages of up to 35,000 dollars, not counting interest and costs; the Civil Resolution Tribunal hears small claims of up to 5,000 dollars, not counting interest and expensesSmall Claims Act, s. 3 (1); Small Claims Court Monetary Limit Regulation, s. 1 ยท Civil Resolution Tribunal Act, s. 118 (1); Tribunal Small Claims Regulation, s. 3
  • A claim for a demand obligation, such as a loan payable on demand, is discovered on the first day there is a failure to pay after a demand for payment has been madeLimitation Act, s. 14
  • Whatever the discovery date, no court proceeding may be started more than 15 years after the act or omission the claim is based on (for a demand obligation, the day it is discovered under s. 14)Limitation Act, s. 21 (1), (2)
  • An acknowledgement of liability made before a limitation period expires restarts both periods from that day; it must be in writing, signed and made to the person with the claim or their agent, and a part payment of a liquidated sum counts as an acknowledgementLimitation Act, s. 24 (1), (6), (7)
  • A court adds interest to a money judgment from the day the cause of action arose to the date of the order, but not where the parties have their own agreement about interestCourt Order Interest Act, s. 1 (1), 2 (b)

Suing on a note

A missed payment starts a 2-year period from discovery. On a demand note, the clock starts only when you have demanded payment and it is not made, and the 15-year outer limit runs from then too.

Payments keep the note alive

Each payment the borrower makes is a part payment of a liquidated sum and restarts both periods, as does a signed written acknowledgement.

Collecting the balance

The Civil Resolution Tribunal hears claims up to 5,000 dollars and Small Claims up to 35,000 dollars, interest not counted.

Common mistakes

  • Writing a monthly rate only: the Interest Act then caps interest at 5% a year.
  • Leaving a demand note for years without a demand, then assuming the time to sue has passed.
  • Lending to two people and having only one sign.

Sources

Last reviewed November 3, 2026. Next review due February 3, 2027. This page explains published rules to help you write your report. It is not legal advice; the official text linked above governs.