A Connecticut secured promissory note is a legally binding document used in financial transactions where one party lends money to another, with the borrower offering collateral to secure the loan. This includes real estate, vehicles, or valuable personal property.
One significant advantage of a secured promissory note is that it assures the lender that they have recourse to the specified collateral to recover their funds in the event of default. This added security often results in more favorable loan terms, such as lower interest rates or higher loan amounts. However, borrowers should be aware that failing to meet the terms of the note could lead to the loss of the pledged collateral.
