A New Hampshire secured promissory note is a legal instrument that ensures mutual understanding in a lending deal, requiring the borrower to pledge collateral, like a home, vehicle, or boat, to secure the loan. It outlines payment terms and consequences for non-compliance, safeguarding the lender’s interests.
In case of default, the pledged item compensates for the unpaid balance. The borrower retains possession of the collateral until full repayment but must forfeit it, covering any shortfall between its value and the loan amount, if they fail to meet the terms.
