A Nebraska secured promissory note is a document specifying loan terms and allowing lenders to seize collateral if borrowers default. If collateral equals the loan value, borrowers are freed from further payments; if not, lenders may seek the difference plus legal maximum interest (ยง 45-101.03).
The note clarifies payment schedules, penalties, and interest rates, ensuring both parties understand the deal. Interest on the loan is capped by Nebraska’s usury laws, ensuring the lender’s profit remains within legal limits.
