A New Hampshire secured promissory note is used to establish the terms of a loan for which the borrower must provide the lender with security (collateral). The borrower must state on the form the property they will secure the loan with and are obliged to hold said property in their possession until the loan is fully repaid. If the borrower defaults on the agreement, the security is forfeited, and they must pay the lender any difference in value between the security and the loan amount.
The completed form will also be used to record the loan’s interest rate, due date, and installment plan. The creditor may demand that the debtor name a co-signer to guarantee the loan further, in which case said co-signer would need to be recorded in the agreement also. Once the note is signed by all applicable parties, the terms therein are legally binding until the balance is repaid plus interest.
Unsecured Promissory Note – A promissory note wherein the lender is not given collateral.