Secured Promissory Note and Security Agreement (England and Wales)

When a person or entity (the “Lender”) loans money to another person or entity (the “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. The Secured Promissory Note contains three repayment options (on-demand, monthly instalments and scheduled instalments) and a Security Agreement which sets out the collateral for the loan. Having a written Secured Promissory Note and Security Agreement will prove invaluable if the borrower defaults on repaying the loan or in the event of litigation. (continued ...)