A Pennsylvania secured promissory note details the manner in which a borrower will repay a loan to a lender, as well as the personal assets the borrower sets forth as collateral. The form should provide essential information regarding the loan amount, interest, how often payments are to be made, potential late fees, and a description of the collateral the borrower provides.
A promissory note is often used by individuals or entities that cannot or prefer not to secure a loan from traditional financial institutions. Collateral reduces a lender’s risk by giving them the means to recover their losses should the borrower fail to fulfill their obligations.
Unsecured Promissory Note – Used when a lender provides uncollateralized financing to another individual or entity.