Secured Promissory Note

A secured promissory has to be used when a borrower promises to pay a certain amount. The promise can be to repay a loan with a security of a deed of trust, mortgage or in the form of some other valuable security.

This security has to be equivalent in amount to the loan amount which needs to be repaid. The promissory note is a form of security for the lender in the case of default of payment. The person who has lent the money can recover his loan money from the security that has been provided. This form is a template which can be adjusted according to needs of the parties.

The form requires details such as the amount of the promissory note and the date on which the promissory note has been made. The maker of the promissory note is the person who promises to pay back the money to the holder. The name of both the maker and the holder need to mentioned, followed by the amount of money that the maker promises to pay. The interest which needs to be paid on the loan amount also needs to be mentioned as agree between the parties.

Secured Promissory Note

The next part requires the details regarding the installments that need to be paid. The parties must decide whether there will be installments and in what amount. The date on which the installments start and date on which they end need to be mentioned. The appropriate boxes need to be checked depending on what is agreed.

The due date, default interest and the charges in case of late payments also need to be filled in the appropriate blanks. The promissory note needs to be signed by both the maker as well as the holder in two separate locations, where the relevant blanks have been left.

Any further terms that may have been agreed to can be attached to the note and signed by both parties for them to be binding. The last part of the note makes mention of the choice of security which will be used for the promissory note and the address of the maker.

Text Version of the Form











hereinafter “Maker” promises to pay to




hereinafter “Holder” or order at




or other such place as may be designated by the Holder from time to time, the principal sum of


                                                                                                 Dollars  ($                                             ), with


interest thereon from           day of                               on the unpaid principal at the rate of               percent  (        %)

per annum as follows:



  1. INSTALLMENT PAYMENTS: Maker shall pay, (check one)


  1. NO INSTALLMENTS. No installment payments are required.




Dollars  ($                                   ).


  1. INTEREST ONLY PAYMENTS on the outstanding principal balance.


(The following must be completed if “b” or “c” is checked)


The installment payments shall begin on the   day of                                                                                  ,


and shall continue on the                                            day of each succeeding:      (check one)


☐calendar month ☐third calendar month ☐sixth calendar month ☐twelfth calendar month




  1. DUE DATE: The entire balance of this Note together with any and all interest accrued thereon shall be due and payable in full on day of   .


  1. DEFAULT INTEREST:   After maturity,  or failure to make any payment, any unpaid principal  shall accrue interest at the rate of                            percent (               %) per annum (18% if not filled in) OR the maximum rate allowed by law, whichever is less, during such period of Maker’s default under this Note.


  1. ALLOCATION OF PAYMENTS:   Each payment  shall be credited  first to any late charge due, second  to interest, and the remainder to principal.


  1. PREPAYMENT: Maker  may prepay all or part of the balance  owed  under  this Note at any time without penalty.


  1. CURRENCY: All principal and interest payments shall be made in lawful money of the United States.


  1. LATE CHARGE: If Holder receives any installment payment more than                days (15 days

if  not  filled  in)  after  its  due  date,  then  a  late  payment  charge  of  $  ,  or     percent ( _%) of the installment payment (5% of the installment payment if neither is filled in) shall be added

to the scheduled payment.


  1. DUE ON SALE: (OPTIONAL-Not  applicable  unless initialed by Holder and Maker to this Note)   If this Note  is  secured  by a Deed  of Trust  or  any other  instrument  securing  repayment  of this  Note,  the property described  in  such  security  instruments  may not  be  sold  or  transferred  without  the Holder’s      Upon breach of this provision, Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law.




Maker (Initials)                                                             Holder (Initials)


  1. ACCELERATION: If Maker fails to make any payment owed under this Note, or if Maker defaults under any

Deed of Trust or any other instruments  securing repayment of this Note, and such default is not cured within

days (30 days if not filled in) after written notice of such default, then Holder may, at its option,

declare all outstanding  sums owed  on this Note to be immediately  due and payable,  in addition  to any other rights or remedies  that Holder may have under the Deed of Trust or other instruments  securing  repayment  of this Note.


  1. ATTORNEYS’ FEES  AND  COSTS:  Maker  shall  pay all costs incurred  by Holder  in  collecting  sums due under this Note after a default, including reasonable attorneys’ fees, whether or not suit is brought.  If Maker or Holder sues to enforce this Note or obtain a declaration  of its rights hereunder, the prevailing party in any such proceeding  shall  be  entitled  to  recover  its  reasonable  attorneys’  fees  and  costs  incurred  in  the  proceeding (including those incurred in any bankruptcy proceeding or appeal) from the non-prevailing party.


  1. WAIVER OF PRESENTMENTS:  Maker  waives  presentment  for  payment,  notice  of dishonor,  protest  and notice of protest.


  1. NON-WAIVER: No failure or delay by Holder in exercising Holder’s rights under this Note shall be a waiver of such rights.


  1. SEVERABILITY: If  any  clause  or  any  other  portion  of  this  Note  shall  be  determined  to  be  void  or unenforceable  for  any reason,  such  determination  shall  not affect  the validity  or  enforceability  of any other clause or portion of this Note, all of which shall remain in full force and effect.


  1. INTEGRATION: There are no verbal or other agreements which modify or affect the terms of this Note.  This Note may not be modified or amended except by written agreement signed by Maker and Holder.


  1. CONFLICTING TERMS: In the event of any conflict between  the terms of this Note and the terms of any Deed of Trust or other instruments securing payment of this Note, the terms of this Note shall prevail.


  1. EXECUTION: Each Maker executes this Note as a principal and not as a surety.   If there is more than one Maker, each such Maker shall be jointly and severally liable under this Note.


  1. COMMERCIAL PROPERTY:   (OPTIONAL-Not  applicable unless initialed by Holder and Maker to this Note)    Maker  represents  and  warrants  to Holder  that  the sums  represented  by this  Note  are being  used  for business, investment or commercial purposes, and not for personal, family or household purposes.



Maker (Initials)                                                             Holder (Initials)




  1. DEFINITIONS: The word Maker shall be construed  interchangeably  with the words Borrower  or Payer and the word Holder shall be construed interchangeably  with the words Lender or Payee.  In this Note, singular and plural  words  shall  be  construed  interchangeably  as may be appropriate  in  the context  and  circumstances  to which such words apply.




  1. NONE


  1. As set forth on the attached “Exhibit A” which is incorporated by this reference.


(Note:  If neither a or b is checked, then option “a” applies)



Maker (signatures)                                                                   Holder (signatures)


Maker’s address for all notices given by Holder under this Note:




WHEN  PAID this original  Note together  with  the Deed  of Trust securing  the same,  must be surrendered  to the Trustee for cancellation and retention before any reconveyance can be processed.