A New Mexico secured promissory note is a legal document that obligates a borrower to repay a loan under specified terms, including the use of assets as collateral for security. It outlines essential details like the repayment schedule, interest rates, and the process in case of default.
Signing by all involved parties activates the agreement, making it enforceable and motivating the borrower to meet their obligations to benefit from potentially lower interest rates. Should the borrower fail to repay, the lender is entitled to the pledged collateral to recoup their losses.
