(Free Template) Secured Promissory Note

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Here it is in MS Word format.  This is a secured note, meaning there is a collateral. If you want an unsecured promissory note, then erase Section 4 and the word “SECURED” in the title.

SECURED PROMISSORY NOTE
Principal Amount: $_______________                                                         Date:___________________
Borrower:________________________________________________________________________________

Lender:___________________________________________________________________________________


1.    Amount. Borrower agrees to pay Lender the total amount of $__________, together with interest payable on the unpaid principal at the rate of ____________% per annum, calculated yearly not in advance.  The principal amount of this Note and any accrued but unpaid interest shall be due and payable in equal monthly installments beginning on __________________The Note shall be repaid in full on or before _________________. All payments under this Note shall be applied first to accrued but unpaid interest, and next to outstanding principal.

2.       Prepayment.  The Borrower may pay the outstanding balance then owing under this Note to Lender without premium or penalty.

3.       Default & Acceleration.  Borrower’s failure to pay any part of the principal or interest under this Note within 15 days after the due date shall constitute a Default under this Note. Upon the occurrence of a Default under this Note, and in addition to any other rights and remedies that Lender may have, Lender shall have the right, at its sole and exclusive option, to declare this Note immediately due and payable in full.

4.       Security. The note is secured by the following Security: [2013 Honda Civic VIN: 123456789]. The Borrower gives to the Lender a security interest in the Security until this Note is
paid in full. The Lender will be listed as a lender on a title of the Security whether or not the Lender elects to perfect the security interest in the Security. In the event of a Default, the Security will be immediately provided to the Lender who will have all rights of repossession of a secured party.

5.       Subordination.  The indebtedness evidenced by this Note shall be subordinated and junior in right of payment to all senior debt owed by Borrower to any third party lender.

6.       Transfer of the Note. Borrower hereby waives any notice of the transfer of this Note by Lender or by any subsequent holder of this Note, agrees to remain bound by the terms of this Note subsequent to any transfer, and agrees that the terms of this Note may be fully enforced by any subsequent holder of this Note.

7.       Expenses.  In the event of a Default, the Borrower agrees to pay, in addition to the principal and interest hereunder, reasonable attorneys’ fees, plus all other reasonable expenses of collection incurred by Lender.

8.       Governing Law. This Note shall be governed by, and construed in accordance with, the laws of the State of ___________________, without regard to its conflict of law principles that would result in application of any other law.

9.       Successors.  This Note shall bind Borrower and Borrower’s successors, heirs and assigns; provided, however, that Borrower may not assign any of rights or delegate any obligations hereunder without the prior written consent of the Lender.
IN WITNESS WHEREOF, the Borrower has executed this Note:
BORROWER:     _____________________________
                                (Signature)
 _____________________________
                                (Name)

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