A Tennessee Convertible Secured Promissory Note is a legal document that outlines the terms and conditions of a loan agreement between a lender and a borrower in the state of Tennessee. This form of promissory note is commonly used when the lender requires additional security to protect their investment, and the borrower has the option to convert the loan into equity in the future. Keywords: Tennessee, Convertible, Secured, Promissory Note, loan agreement, lender, borrower, equity. There are different types of Tennessee Convertible Secured Promissory Notes, including: 1. Traditional Convertible Secured Promissory Note: This is a standard promissory note that includes a conversion feature allowing the lender to convert the outstanding loan balance into equity in the borrower's company at a later date. 2. Convertible Secured Promissory Note with Warrant Coverage: This type of promissory note grants the lender the option to convert the loan into equity, while also providing them with additional warrants or stock options as an extra incentive. 3. Convertible Secured Promissory Note with Collateral: In this variation, the borrower provides collateral, such as real estate, equipment, or inventory, as security against the loan. If the borrower defaults, the lender can seize the collateral to recover their investment. 4. Convertible Secured Promissory Note with Personal Guarantee: Here, the borrower agrees to personally guarantee the repayment of the loan in addition to offering collateral. This provides an extra layer of security for the lender in case the collateral is insufficient to cover the loan amount. 5. Convertible Secured Promissory Note with Interest Accrual: This type of promissory note includes an accrual feature whereby the interest on the loan accumulates over time and is added to the principal amount. The lender then has the option to convert both the principal and the accrued interest into equity. Overall, a Tennessee Convertible Secured Promissory Note is a versatile financial instrument that allows lenders to secure their investment while offering borrowers the potential to convert their debt into equity. By understanding the different types of promissory notes available, both lenders and borrowers can choose the option that best suits their needs and financial goals.