A Tennessee secured promissory note is a debt instrument that obligates a borrower to repay money lent or face forfeiture of collateral put up as security. Under this type of agreement, the borrower offers an asset or personal property (the collateral) that will be given to the lender in the event that they are unable to fulfill the terms of repayment. By ensuring that the collateral is of comparable value to the principal sum, the lender can guarantee that they will be compensated for the loan.
The note should provide a clear description of the collateral, including any identification or registration numbers.
Unsecured Promissory Note – A loan that isn’t accompanied by collateral.