What is a Secured Promissory Note?
It’s the same as a Collateral Note. This is a Note secured by collateral. A typical example of a secured Promissory Note is a mortgage loan. If you do not take collateral and the Borrower defaults on the note, you will have to take the Borrower to court in order to recover your money; and your judgment can only be enforced against certain assets of the Borrower. However, if you take collateral for the note, you may be entitled to seize and sell the collateral if the Borrower fails to repay the note.
