The New York secured promissory note establishes a mutual knowledge of the major details of a money lending deal between a lender and borrower. The lender makes a profit from the deal by earning interest on top of being reimbursed the original loaned balance. If the borrower makes payments on time and to the full amount the deal should go smoothly. However, if the borrower is late on payments he or she could receive late fees; and if payments are missed entirely, the borrower could enter into default on the balance. In this document, a section called security requires the borrower to set aside an item that is given to the lender in the case of a default to help offset the unpaid balance.
How to Write
Step 1 – Start by entering the following information on the top of the first page:
- Current Date
- Name and Address of Borrower
- Name and Address of Lender
- Full Balance of Note
- Interest Rate
Step 2 – Select the payment method for the agreement found at the second (2) section. There are three possible options to choose from. Two of the options utilize installments, which require the borrower to make several payments to the lender over a scheduled amount of time. If one of these options are selected, choose either weekly or monthly payments and enter the day the first payment will be due.
Step 3 – For section two (2) and three (3), enter the final due date that all outstanding debt will be due by. Next, enter the interest rate that goes into effect if the borrower enters into default on the balance.
Step 4 – Head to section six (6) and enter the time span required to pass before a late fee can be issued as well as the cost of a late fee.
Step 5 – For the eighth (8) section, enter the amount of days that need to pass after the borrower enters into default before the lender can issue acceleration. Acceleration requires all outstanding debt to be paid immediately by the borrower.
Step 6 – Proceed to the seventeenth (17) section and enter the item that will be used as security; which is an item that helps cover the remaining unpaid balance if the borrower enters into default and cannot recover.
Step 7 – Finally, enter the current date followed by the signatures of the lender, borrower, and witness. Once this has been completed, the agreement will go into full legal effect.