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Secured Promissory Note Template

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A secured promissory note is a document that allows a party to lend money with the added insurance of having property to be handed over to them in the chance the borrower defaults.

By State

How to Write

Step 1 – In the header area, enter the date and the names along with addresses of the borrower and the lender. In addition include the amount being borrowed and the interest rate (remember to check with your State’s usury rate as there is a maximum that is State specific).

Step 2 – In Section 1, enter the payment structure. Check the box whether it will be a balloon payment at the end of the term, installments in denominated amounts, or interest only payments. If there are installments (most common way of paying back) then an installment option should be checked (weekly/monthly).

Step 3 – In Section 2, enter the payment due date.

Step 4 – In Section 3, enter the interest rate if the amount is to go into default.

Step 5 – In Section 6 write the payment penalty and how many days are considered to be late for any payment.

Step 6 – In Section 8 enter the number of days the borrower has to cure any default.

Step 7 – In Section 17, the note is to be secured by the described asset/property. It is important that the borrower understands that under any default that whatever is listed here shall be in the possession of the lender if they should not pay back the loan amount.

Step 8 – Both parties should sign the document and elect to have at least one (1) witness. After it is signed an original should be given to each party and the form is legal.


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