A Georgia secured promissory note serves as a legally binding agreement between two parties to borrow funds, with collateral provided by the borrower to mitigate the lender’s risk in case of payment default. This arrangement offers assurance to the lender, reducing the risk of financial loss if repayment is not made. Additionally, the presence of collateral incentivizes the borrower to meet payment obligations promptly to avoid forfeiting personal property.
Alongside specifying loan amount and collateral, the contract outlines the interest rate and payment schedule, which may be structured weekly, bi-weekly, monthly, or as a lump sum. In the event of non-compliance with the established terms, the lender retains the option to pursue legal action.
