Promissory Note - Term- Secured

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Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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When a person or entity (“Lender”) loans money to another person or entity (“Borrower”), the loan is typically formalized with a promissory note. In this type of promissory note (a term promissory note) the Borrower promises to repay the principal of the loan and accrued interest, if any, on or before a certain date in the future. A promissory note will set forth, among other things, the repayment schedule, the interest rate, and defaults.

Often the Lender will want some additional assurance, usually in the form of collateral, in case the Borrower fails to repay the loan. To ensure that that collateral is collectible in the case of a default, the parties will usually enter into another agreement—a security agreement. A security agreement sets out the rights of the Lender with regard to the collateral.


This form can be used in all states.

This package contains: (1) Instructions and Checklist for the Secured Term Promissory Note (the “Note”) and the Security Agreement (the “Agreement”); (2) Information about the Note and Agreement; (3) the Note; and (4) the Agreement.

Promissory Note - Term- Secured

Product Details

Product Promissory Note - Term- Secured
Country United States
Pages 11
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Promissory Note - Secured (Term)
Product number #21084
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

A secured promissory note is a legal document that outlines the terms of a loan where the borrower pledges collateral to secure the loan. This ensures that the lender has a claim to the collateral in case the borrower defaults on the loan.

Collateral is an asset that the borrower offers to the lender as security for the loan. If the borrower fails to repay the loan as agreed, the lender has the right to seize the collateral to recover the owed amount.

Yes, this secured term promissory note and security agreement is designed for use in all states, ensuring compliance with various state laws regarding secured loans.

If the borrower defaults on the loan, the lender can enforce the terms of the security agreement to take possession of the collateral. This process typically involves legal proceedings to ensure the lender's rights are upheld.

While the form is designed to be comprehensive, it is advisable to consult with a legal professional to ensure that all terms are appropriate for your specific situation and comply with local laws.

Is This Form Right For You?

Use This Form If:

  • Individuals who are looking to borrow money from a friend or family member can use this secured promissory note to formalize the loan. This document provides clarity on the repayment terms and protects the lender by securing the loan with collateral.
  • Business owners seeking to finance their operations may require a secured loan to obtain necessary funds. By utilizing this promissory note, they can ensure that the lender has a claim to specific assets in case of default, thus making the loan more attractive to potential lenders.
  • Real estate investors often need to secure loans for property purchases. This form allows them to create a legally binding agreement that outlines the loan terms and secures the loan with the purchased property, ensuring the lender's investment is protected.
  • In situations where a borrower has a poor credit history, lenders may require additional security to mitigate risk. This secured promissory note provides the necessary legal framework to outline the terms of the loan and the collateral involved, giving lenders confidence in the transaction.
  • For those involved in personal loans, this document serves as a safeguard for both parties. It not only details the repayment schedule but also specifies the collateral, ensuring that both the lender and borrower have a clear understanding of their obligations.

Do Not Use If:

  • This form is not appropriate for unsecured loans, where no collateral is involved. In such cases, a different type of promissory note should be utilized to reflect the lack of security.
  • If the loan amount is very small, informal agreements may suffice without the need for a formal promissory note. For minor transactions, a simple written acknowledgment may be more suitable.
  • In situations where the borrower is unable to provide collateral, this form would not be applicable. Lenders may require a different approach for unsecured lending.
  • If the loan is intended for illegal activities or purposes, using this form would not be appropriate. Legal agreements should only be used for lawful transactions.
  • For loans involving complex terms or conditions, it may be better to consult a legal professional instead of relying solely on this standard form.

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