A California secured promissory note is an agreement between a borrower and a lender in financial transactions. It is backed by collateral, providing the lender with added security in case of default. Common forms of collateral include real estate properties, vehicles, or other valuable assets the borrower owns.
This legal document defines several fundamental components, such as the identification of the parties and the description of the assets they are using to secure the loan. By including this information, the lender gains a legal claim to the collateral in the event of default, allowing them to recover their loan.
