An Arizona secured promissory note is a legal document outlining a borrower’s promise to repay a loan under specific terms. What sets it apart is that it includes a collateral provision, meaning the borrower pledges assets (such as real estate or vehicles) to secure the loan. In the event of default, the lender can seize and sell the collateral to recover losses.
To validate the document, both parties must sign it voluntarily and with a complete understanding of its terms, as failure to repay according to the agreed-upon terms can result in the loss of the pledged collateral. Likewise, lenders should ensure that the terms of the note comply with state law to protect their interests.
