A South Carolina secured promissory note acts as a formal agreement where a borrower pledges certain assets as collateral to borrow funds from a lender. The collateral serves as a buffer for the lender, providing a method to retrieve losses if the borrower doesn’t repay the lender according to the agreed-upon terms.
The secured nature of this note significantly lowers the lender’s risk, as they have the right to possess and sell the items of value (such as a vehicle or property) if the borrower doesn’t pay them back. However, if the sale of these assets doesn’t cover the outstanding loan amount, the borrower still must pay the deficit.
