A Delaware secured promissory note is commonly used in financial transactions where one party lends money to another, and the borrower pledges collateral to secure the loan. This involves assets like real estate, vehicles, or valuable personal belongings.
In the event of default, the lender can seek recourse through the specified collateral to recover their funds. Lenders should conduct due diligence to verify the value and legality of the collateral. At the same time, borrowers should carefully review the terms of the note to prevent any potential misunderstandings or disagreements.
