A New York secured promissory note is a binding agreement that outlines the terms of a loan where a borrower pledges collateral as security, enhancing the lender’s protection and the borrower’s ability to secure financing. This document details the loan amount, interest rate, repayment schedule, and consequences of late or missed payments, including potential default.
It also specifies that in the event of default, the pledged asset may be forfeited to offset the unpaid balance. Additionally, the option for a co-signer can further assure the lender of repayment. This comprehensive agreement requires careful review and mutual understanding before signing.
