A Virginia secured promissory note is a legal document for the lending of money secured by collateral. This type of loan agreement is usually used by two (2) individuals that know each other personally, yet it enables the lender to still hold the borrower accountable for their debt. By having the borrower sign the note, the lender will be able to collect interest on the principal, establish a payment schedule, and secure their investment with the borrower’s property.
In the event that the borrower doesn’t fulfill their obligations and the loan defaults, the lender can take possession of the property offered as collateral to cover the expense.
Unsecured Promissory Note – A promissory note that doesn’t require the borrower to put up any collateral.