Secured Term Promissory Note and Security Agreement

When a person or entity (“lender”) loans money to another person or entity (“borrower”), the loan is typically formalised with a written promissory note. In many instances the lender will ask for additional assurance in the form of collateral (such as property) if the borrower fails to repay the loan. This Secured Term Promissory Note and Security Agreement is due on or before a certain date in the future and also contains a Security Agreement which sets out the collateral for the loan. Having a written Secured Term Promissory Note and Security Agreement will prove invaluable if the borrower defaults when payment is due or in the event of litigation. (continued ...)