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Other Names: Secured Promissory Note Form Loan Security Agreement
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What is a Secured Promissory Note?

A Secured Promissory Note is a legal agreement that requires a borrower to provide security for a loan. With this lending document, the borrower puts forth their personal property or real estate as collateral if the loan isn't repaid. A Secured Promissory Note can help convince a lender to make a loan and incentivizes the borrower to pay it back by the due date.  
If you're not looking for a secured note, we also offer a standard Promissory Note and a Promissory Note with Installment Payments.

When to use a Secured Promissory Note:

  • You want to borrow money and offer your personal property or real estate as collateral.
  • You want to lend someone money, but want to secure the loan with collateral.

Sample Secured Promissory Note

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For value received, the undersigned (the "Borrower"), at , , , promises and (collectively, the "Borrower"), at , , , each as principal, jointly and severally, promise to pay to the order of (the "Lender"), and (collectively, the "Lender"), (or at such other place as the Lender may designate in writing), the sum of with




. Payments

shown below and accrued interest in full on (the "Due Date"). in installments of interest only beginning on , and continuing until , (the "Due Date"), at which time the remaining unpaid principal and interest shall be due in full. in installments of , beginning on , and continuing until , (the "Due Date"), at which time the remaining unpaid principal and interest shall be due in full. in installments of , beginning on , and ending , (the "Due Date") at which time the remaining unpaid balance of the Note shall be due in full.




. Application of Payments


All payments on this Note shall be applied first in payment of accrued interest and any remainder in payment of principal.

This Note is secured by personal property in a . This Note shall be secured by a to real property commonly known as , , . Any such prepayment shall be applied against the installments of principal due under this note in the inverse order of their maturity and shall be accompanied by payment of accrued interest on the amount prepaid to the date of prepayment.




If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process.




If any of the following events of default occur, this Note and any other obligations of the Borrower to the Lender, shall become due immediately, without demand or notice:


1) the failure of the Borrower to pay the principal and any accrued interest when due;


2) the liquidation, dissolution, incompetency or death of the Borrower;


3) the filing of bankruptcy proceedings involving the Borrower as a debtor;


4) the application for the appointment of a receiver for the Borrower;


5) the making of a general assignment for the benefit of the Borrower's creditors;


6) the insolvency of the Borrower;


7) a misrepresentation by the Borrower to the Lender for the purpose of obtaining or extending credit; or


8) the sale of a material portion of the business or assets of the Borrower.


assets pledged as security real estate pledged as collateral




If any one or more of the provisions of this Note are determined to be unenforceable, in whole or in part, for any reason, the remaining provisions shall remain fully operative.




All payments of principal and interest on this Note shall be paid in the legal currency of the United States. The Borrower waives presentment for payment, protest, and notice of protest and demand of this Note.


No delay in enforcing any right of the Lender under this Note, or assignment by Lender of this Note, or failure to accelerate the debt evidenced hereby by reason of default in the payment of a monthly installment or the acceptance of a past-due installment shall be construed as a waiver of the right of Lender to thereafter insist upon strict compliance with the terms of this Note without notice being given to Borrower. All rights of the Lender under this Note are cumulative and may be exercised concurrently or consecutively at the Lender's option.


This note may not be amended without the written approval of the holder.





This Note shall be construed in accordance with the laws of the





This Note shall be signed by and and by . , on behalf of




IN WITNESS WHEREOF, this Agreement has been executed and delivered in the manner prescribed by law as of the date first written above.


Signed this _____ day of _______________, _____, at ___________________________, _________________________ .






By: Date:






By: Date:




Dated: _________________________





The is secured by collateral pledged by . Therefore, a Security Agreement should be signed by the parties in addition to the .


and fail fails or and and

Secured Promissory Note FAQs

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  • What does "secured" mean?

    The word "secured" means that the loan is backed by an asset put up as collateral. If the loan cannot be repaid, then the collateral is forfeited to the creditor. A common type of secured loan would be a mortgage, where the loan is secured by the property being purchased.

  • What is the difference between a secured and unsecured Promissory Note?

    The major difference between a secured and unsecured Promissory Note is collateral. A secured promissory note, as the name partially implies, is secured by some form of property (i.e. collateral), while an unsecured promissory note does not involve collateral. If the borrower defaults on a Secured Promissory Note, the lender gets to keep the collateral (the property that was used to secure the loan).

  • Where can I write a Secured Promissory Note Form for free?

    It is fast and simple to get what you need with a free Secured Promissory Note template from Rocket Lawyer:

    1. Make the document - Answer a few questions and we will do the rest
    2. Send or share - Go over it with a lawyer, if needed
    3. Sign it - Sign your Promissory Note online and make it legal

    This method will often end up being notably more affordable than hiring your average law firm.

  • What should be included in a Secured Promissory Note?

    Promissory Notes can be as thorough as you want them to be, but there are a few necessities:

    • The amount of the loan and how that money may be transferred.
    • All parties involved and their contact information. Aside from the original borrower and lender, it's important to track any cosigners on the loan.
    • Repayment schedule. With the loan amount set, it's also important to specify when the amount is due. If the loan is not due in full at a certain date, it can also help to list the required installment payment dates.
    • Any interest on the loan. Interest is a critical aspect of a loan; therefore, any rates should be detailed in the original agreement.
    • The details of the collateral. Include information such as agreed upon value of the collateral, who holds the collateral until the loan terms are met, and details of the transfer of collateral, if necessary.
    • The "what ifs." A lot can happen during the lifetime of a loan: late payments, default, and forbearance. Try to anticipate possible issues in advance to avoid confusion later.
  • Should I hire an attorney for my Secured Promissory Note?

    Making a Secured Promissory Note is normally straightforward, but you might still have legal questions. Depending on whom you reach out to, some lawyers won't even agree to review a document that they didn't write. An easier approach worth consideration is to request help from Rocket Lawyer network of attorneys. If you become a Premium member, you have the ability to request a document review from an experienced attorney or get answers to other questions about your Promissory Note. We are always available to help.

  • What might I usually need to pay to make a Secured Promissory Note?

    The cost of meeting and hiring the average law firm to make a Secured Promissory Note could total anywhere from two hundred to one thousand dollars, depending on where you are and how complex the matter might be. Unlike many other websites you might stumble upon, Rocket Lawyer offers much more than Loan Agreement templates. If you ever require support from a lawyer, your membership offers up to 40% in savings when you hire an attorney from our network.

  • What steps should I take after I have written my Secured Promissory Note?

    After completing a customized Promissory Note using Rocket Lawyer, you'll have the ability to get to it wherever and whenever you choose. As a Rocket Lawyer member, you can edit it, download it in PDF format or as a Word file, print it, and sign it with RocketSign®. Attached to your Secured Promissory Note Form, you'll also find a set of next steps you should take once the document is finished.

  • Does a Secured Promissory Note Form need to be notarized or witnessed?

    Neither witnesses nor notarization are legally required for your Secured Promissory Note Form.

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