An Arkansas secured promissory note serves as a legal contract between a borrower and a lender, detailing the terms of a loan arrangement. It includes a collateral provision wherein the borrower pledges assets to secure the loan. This collateral could be real estate, vehicles, or other valuable possessions.
By securing the loan, the lender gains a legal right to seize and sell the pledged assets in case the borrower fails to uphold their payment obligations. While notarization is not mandatory, it can add an extra layer of authenticity and may be advisable for significant loans.
