A Utah secured promissory note is a legally binding agreement that outlines conditions under which a borrower agrees to repay a specified amount of money to a lender with the assurance of collateral. The borrower pledges this collateral, whether personal property, an asset, or real estate, to match the loan’s value and protect the lender’s interests.
If the borrower doesn’t meet the repayment terms, the lender can acquire the collateral to recover the outstanding debt. This agreement meticulously details the loan’s terms, including a comprehensive description of the collateral, the repayment schedule, interest rates, and potential late fees. When both parties sign this document, they commit to the transfer of funds under the stipulated conditions.
