A New Jersey secured promissory note is a legal agreement where a borrower guarantees loan repayment to a lender by pledging valuable collateral. If the borrower fails to fulfill the terms, the collateral is forfeited to the lender, with the borrower liable for any shortfall plus interest.
The borrower must retain the collateral until the loan is fully settled; transferring it beforehand necessitates immediate loan repayment. The agreement outlines repayment methods, interest rates, and security terms, requiring signatures from both parties and a witness for legal enforcement.
