A Montana secured promissory note is used for loans wherein the debtor borrows funds from a lender while committing their personal property as a security interest. Secured loans provide various advantages for lenders and increase their likelihood of being adequately recompensated, even if the borrower defaults. The borrower must ensure they submit their payments as per the installment plan outlined in the contract or otherwise risk forfeiting the security. If they breach the agreement, the security will be kept under the lender’s ownership until the debt is fully satisfied, or permanently, if they accept the security instead of payment.
Unsecured Promissory Note – Allows an individual to receive financing without the security obligation.