A Texas secured promissory note is a formal agreement detailing a borrower’s commitment to repay a specified sum of money to the lender according to the mutually agreed-upon terms. This legally binding document stipulates that the borrower must offer collateral, such as watercraft, vehicles, or real estate, as a security measure.
If the borrower fails to fulfill their repayment obligations, they must forfeit the collateral to the lender as recourse. When the lender creates this note, they include critical details like the borrowed amount, interest rate, repayment schedule, and the conditions that would trigger a default.
