A Maine secured promissory note is a legal agreement between a borrower and a lender, obligating the borrower to repay the original loan amount plus interest. The loan is secured by collateral, which may include real estate, vehicles, stocks, jewelry, or savings accounts.
If the borrower defaults on the loan, the lender has the right to take possession of the collateral to recover the lost money. It’s essential for the lender to ensure that the value of the collateral is equal to the loan amount and can be easily liquidated if needed.
