A Washington secured promissory note is a legally binding agreement that outlines the terms of a loan, which the lender secures against the borrower’s personal property. This arrangement ensures the lender has a form of security, typically an asset or piece of property, which acts as collateral against the borrowed amount.
In the event the borrower fails to meet the repayment terms, a default occurs. The lender can take possession of the collateral and either retain or sell it to make up for the financial loss. Beyond the principal amount, the agreement also stipulates the accrual of interest and penalties for late payments to further enhance the lender’s protection.
