A Colorado secured promissory note is a legal document used in financial transactions where one party (the borrower) promises to repay a specific sum of money to another party (the lender). It involves collateral, which serves as security for the lender in case the borrower defaults on the loan.
The note outlines the principal amount of the loan, the interest rate, the repayment schedule, and any penalties for defaults. Additionally, it specifies the collateral pledged by the borrower to secure the loan, which can include assets like motor vehicles, equipment, or real estate.
