A Rhode Island secured promissory note serves as a formal contractual agreement between a lender and a borrower, where the borrower commits to repaying a specified amount to the lender within an agreed timeframe. The agreement incorporates a security clause to mitigate the lender’s risk, ensuring the lender can claim predefined collateral if the borrower fails to repay the loan amount.
The collateral in this note can be property, vehicles, or other valuable assets. The security aspect encourages the borrower to adhere to the repayment schedule so they don’t have to forfeit their assets.
