The California secured promissory note is a document that is used for situations involving money loaned between two parties. The major benefit of the note is that it adds a considerable amount of security for the lender in the transaction. This is because the lender is guaranteed to a home, land, vehicle(s), or other personal property owned by the borrower in the case of a default.
How to Write
Step 1 – At the top of the page, enter the current date, the lender’s full name and address, the borrower’s full name and address, the full amount of the loan, and the interest associated with the money being loaned.
Step 2 – In the first section, select the way you want the borrower to pay back the balance. The options range from No Installments, which require the borrower to pay the entire balance in one payment, to Installments, which are multiple payments at previously scheduled periods, to Interest Only Payments, which require the borrower to only pay the interest on the balance until it is paid off in full.
Step 3 – On the lower portion of section 1, enter how the borrower will pay back the balance. This is only required if you chose an option incorporating installments.
Step 4 – For sections two (2) and three (3), enter the final due date of the entire balance then enter the interest percentage in the case of a default on the loan.
Step 5 – Heading down to section six (6), input the amount of time without the borrower can delay payment until a late fee is issued.
Step 6 – For the eighth section (8), Enter the time span until acceleration occurs.
Step 7 – At the bottom of the document, enter the current date followed by the signed and printed names of the lender, the borrower, and the witness to the agreement. Once the document is signed, it will go into effect and the borrower will be responsible for making payments.