A South Dakota secured promissory note establishes a legally binding agreement in which one party lends money to another with the assurance of repayment, supported by the borrower’s assets serving as collateral. This arrangement minimizes the lender’s risks since the lender can claim and sell the pledged property.
Essential details within this note include the involved parties’ identities, the loan’s principal amount, the agreed-upon interest rate, and the repayment schedule. Because the borrower provides collateral, they can obtain a more favorable interest rate in comparison to unsecured loans.
