This form is a secured Promissory Note. The note includes a provision which describes the collateral to be used as security on the loan. The form also contains a section which details various actions which would constitute default on the note.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés.
For your convenience, the complete English version of this form is attached below the Spanish version.
Yes, they're quite common! Many folks use them for personal loans or business financing because they provide security for the lender and can offer lower interest rates for the borrower.
Yes, you can craft your own, but it's a smart idea to consult with a legal expert. You want it to be airtight and clear, avoiding any future misunderstandings.
Yes, there are some risks to consider. If the borrower defaults, you might have to go through legal hoops to reclaim the collateral, and it may not always be worth what you hoped.
You can use various types of assets as collateral, like real estate, cars, or even stocks. Just remember, it has to be something of value that the lender can take if needed.
Trusted and secure by over 3 million people of the world’s leading companies