A Massachusetts secured promissory note is a legally binding agreement between a borrower and a lender for a monetary loan. The borrower must repay the loaned balance and interest in regular installments or full by a specific due date. To secure the loan, the borrower must put up assets as collateral.
If the borrower defaults on the loan, the lender can take possession of the pledged collateral. The borrower may resolve the default by paying the outstanding balance, interest, and fees, or the lender can accept the collateral as payment and release the borrower from further obligations.
