A Wisconsin secured promissory note is the contract for a loan in which the borrower offers collateral as security on the lender’s expense. The collateral can be any asset or item the borrower owns that is of similar value to the loan amount. If the borrower fails to meet the terms of repayment, the lender can seize the collateral as compensation for the unpaid balance. The promissory note’s terms will include the principal sum, the interest rate, payment schedule, late fees, a description of the collateral, and the conditions whereby the loan can default and the collateral must be transferred.
Unsecured Promissory Note – A promissory note that is not accompanied by collateral.