An Idaho secured promissory note outlines the payment terms for a loan backed by collateral provided by the borrower. This agreement mirrors an unsecured note regarding loan specifics such as payment deadlines, interest rates, and penalties for late payments. However, the note adds a layer of security for the lender, as it involves the borrower pledging an asset as collateral.
Should the borrower fail to repay the loan on time, the lender has the right to seize the collateral to cover the outstanding debt. While the document mitigates the lender’s risk, it typically involves lower interest rates and a more thorough approval process.
