Secured Promissory Note Template

What Is a Secured Promissory Note?

A Secured Promissory Note is a document that can be used by individuals when they would like to secure a financial obligation. It involves two parties - a borrower and a lender - and its purpose is to legally bind the borrower to pay their loan back to the lender.

This type of promissory note secures the obligation with a security instrument - a piece of property that belongs to the borrower which can be sold if they do not fulfill their responsibility to pay their loan back to the lender. A Secured Promissory Note template can be downloaded below.

Generally, promissory notes can include the following information:

1. Information About the Borrower . When preparing a promissory note the borrower must designate their name and their mailing address.
2. Information About the Lender . The same information as stated in the previous part is required from the lender.
3. Financial Obligation Details . Here, the parties are supposed to provide the conditions of their financial obligation. it can include details about how much the borrower is supposed to pay back to the lender, how often they are supposed to do it, the interest rate, the late payment penalty, etc.
4. Security Instrument . If the borrower has secured their debt with a piece of their property, then in this section, they are supposed to describe it (type of property and its main characteristics).

Still looking for a particular template? Take a look at the related templates below:

• Unsecured Promissory Note Template;
• Guarantee Agreement Template;
• Financial Affidavit Form.