An Alabama secured promissory note validates a commitment from the borrower to repay the lender a specified amount of money over a defined period, along with any accrued interest. The document details the actions that the lender can take in the event of default by the borrower, such as seizing and selling the collateral to satisfy the debt.
The presence of collateral serves as security for the loan, and such assets include homes, vehicles, or boats, although any real or personal property can be considered. These types of loans are favored for their lower interest rates, enabling higher borrowing amounts.
