A Utah secured promissory note establishes the terms of a personal loan that is secured by the borrower’s personal property. The collateral provided by the borrower should be an item, asset, or real property of similar value to the principal sum. In the event that the loan defaults, the lender can take possession of the collateral as compensation for the balance owing.
Once both parties have signed the document, the funds will be considered transferred and the borrower should be an asset of similar value to the principal sum loaned.
Unsecured Promissory Note – The same as the “secured” note, except that it has no collateral guaranteed by the borrower.