A North Dakota secured promissory note is a document outlining a loan agreement where a borrower pledges an asset of similar value to the loan as collateral, ensuring the lender’s protection. This document, less formal than a traditional loan contract, specifies the loan amount, interest rate, repayment schedule, and the consequences of late payments or default.
It facilitates financing for borrowers with lower incomes or credit scores by providing a tangible guarantee to the lender, who may claim the collateral if the borrower fails to meet the repayment obligations.
