[{"data":1,"prerenderedAt":531},["ShallowReactive",2],{"document-secured-lumpsum-promissory-note-agreement-D13041":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":179,"customdescription":6,"mdFm":180,"mdProseHtml":530},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ",null,"Secured Lumpsum Promissory Note Agreement","4",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":15,"description":6},"secured lumpsum promissory note agreement",[17,20],{"label":18,"url":19},"Business Plan Kit","/templates/business-plan-kit/",{"label":21,"url":22},"Business Procedures","/templates/business-procedures/","Secured Lumpsum Promissory Note Agreement Template","https://templates.business-in-a-box.com/imgs/400px/13041.png","https://templates.business-in-a-box.com/imgs/600px/13041.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Legal Agreements","/templates/business-legal-agreements/",{"label":36,"url":37},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[39,43,47,51,55,59,63,67,71,75,79,83,87,105,118,133,148,162],{"label":40,"url":41,"thumb":42,"extension":10},"Security Agreement and Promissory Note","/template/security-agreement-and-promissory-note-D912","https://templates.business-in-a-box.com/imgs/250px/912.png",{"label":44,"url":45,"thumb":46,"extension":10},"Promissory Note","/template/promissory-note-D434","https://templates.business-in-a-box.com/imgs/250px/434.png",{"label":48,"url":49,"thumb":50,"extension":10},"Subordination Agreement to Secured Debt","/template/subordination-agreement-to-secured-debt-D410","https://templates.business-in-a-box.com/imgs/250px/410.png",{"label":52,"url":53,"thumb":54,"extension":10},"Promissory Note Line of Credit","/template/promissory-note-line-of-credit-D435","https://templates.business-in-a-box.com/imgs/250px/435.png",{"label":56,"url":57,"thumb":58,"extension":10},"Promissory Note With Acknowledgment","/template/promissory-note-with-acknowledgment-D437","https://templates.business-in-a-box.com/imgs/250px/437.png",{"label":60,"url":61,"thumb":62,"extension":10},"Guarantee of Claim Promissory Note","/template/guarantee-of-claim-promissory-note-D884","https://templates.business-in-a-box.com/imgs/250px/884.png",{"label":64,"url":65,"thumb":66,"extension":10},"Collection Letter_Following Promissory Note","/template/collection-letter_following-promissory-note-D196","https://templates.business-in-a-box.com/imgs/250px/196.png",{"label":68,"url":69,"thumb":70,"extension":10},"Demand to Pay Promissory Note","/template/demand-to-pay-promissory-note-D207","https://templates.business-in-a-box.com/imgs/250px/207.png",{"label":72,"url":73,"thumb":74,"extension":10},"Secured Installment Note","/template/secured-installment-note-D440","https://templates.business-in-a-box.com/imgs/250px/440.png",{"label":76,"url":77,"thumb":78,"extension":10},"Movable Hypothec Promissory Note","/template/movable-hypothec-promissory-note-D432","https://templates.business-in-a-box.com/imgs/250px/432.png",{"label":80,"url":81,"thumb":82,"extension":10},"Promissory Note With Acceleration Clause","/template/promissory-note-with-acceleration-clause-D436","https://templates.business-in-a-box.com/imgs/250px/436.png",{"label":84,"url":85,"thumb":86,"extension":10},"Letter of Default on Promissory Note","/template/letter-of-default-on-promissory-note-D431","https://templates.business-in-a-box.com/imgs/250px/431.png",{"description":88,"descriptionCustom":6,"label":89,"pages":90,"size":9,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":95,"url":104},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":95,"description":6},"loan agreement",[97,100,103],{"label":98,"url":99},"Finance & Accounting","finance-accounting",{"label":101,"url":102},"Business Loans","business-loan",{"label":101,"url":102},"/template/loan-agreement-D417",{"description":106,"descriptionCustom":6,"label":107,"pages":8,"size":9,"extension":10,"preview":108,"thumb":109,"svgFrame":110,"seoMetadata":111,"parents":113,"keywords":112,"url":117},"SHAREHOLDER LOAN AGREEMENT This Shareholder Loan Agreement (the \"Agreement\") is effective as of [DATE], BETWEEN: [SHAREHOLDER NAME] (the \"Shareholder\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Borrower\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Shareholder desires to loan funds to the Borrower for the Borrower's operations; WHEREAS, the Parties wish to memorialize the terms and conditions governing the Loan; WHEREAS, for the purposes of this Agreement, the Shareholder is willing (i) to be deemed to have accepted the Borrower's assertion that no Existing Default has occurred, (ii) to be deemed to have withdrawn the Default Notice, retroactively, as of [SPECIFY DATE], and (iii) to accept the Borrower's proposal so to restructure the Loan and other Secured Obligations, all on the terms and conditions provided herein; WHEREAS, both the Parties affirm to understand all of the provisions contained in this Agreement, and in case either Party requires clarification as to one or more of the provisions contained herein, either Party has requested clarification or otherwise sought guidance. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: LOAN AND INTEREST RATE The Shareholder shall loan a total of [SPECIFY THE AMOUNT] to the Borrower to finance the operations of the Borrower's business (the \"Loan\"). The Loan shall bear interest at the rate of [SPECIFY RATE] % per annum, compounded annually. The Parties shall calculate the interest based on a full year (365 days) consisting of twelve months. Interest will accrue until repayment of the Loan. The amount owed to the Shareholder shall be calculated as the Loan plus accrued interest thereon (the \"Loan Amount\"). If the Borrower fails to pay any sum payable under this Agreement when due, the Borrower shall from time to time on demand pay interest on such sum from and including the due date to the date of actual payment (after as well as before judgment) at a per annum interest rate equal to [SPECIFY RATE] % above the interest rate. REPAYMENT The Loan Amount shall be due and payable on [SPECIFY DATE] (the \"Maturity Date\"), provided that the Borrower has enough cash flow to repay the Loan Amount without adversely affecting its then-current business activities. In the event the repayment of the Loan would adversely affect the then-current business activities of the Borrower, the Maturity Date shall be postponed until the Borrower has enough cash flow to repay the Loan Amount without adversely affecting its then-current business activities. At any time, the Borrower, with one week's prior written notice, may repay the entire Loan Amount to the Shareholder without penalty. OBLIGATIONS OF THE BORROWER The Borrower hereby agrees neither to invest in any new business in any other country, nor shall it pay dividends to any other shareholders of the Company unless and until the entire Loan Amount, along with the interest, has been repaid by it to the Shareholder. DEFAULT If any of the following events of default occur, this Agreement and any other obligations of the Borrower to the Shareholder shall become due immediately, without demand or notice. Failure of the Borrower to pay the principal and any accrued interest when due. The filing of bankruptcy proceedings involving the Borrower as a debtor. The application for the appointment of a receiver for the Borrower. The making of a general assignment for the benefit of the Borrower's creditors. The insolvency of the Borrower. A misrepresentation by the Borrower to the Shareholder for the purpose of obtaining or extending credit.","Shareholder Loan Agreement","https://templates.business-in-a-box.com/imgs/1000px/shareholder-loan-agreement-D13239.png","https://templates.business-in-a-box.com/imgs/250px/13239.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13239.xml",{"title":112,"description":6},"shareholder loan agreement",[114,116],{"label":33,"url":115},"business-legal-agreements",{"label":33,"url":115},"/template/shareholder-loan-agreement-D13239",{"description":119,"descriptionCustom":6,"label":120,"pages":90,"size":9,"extension":10,"preview":121,"thumb":122,"svgFrame":123,"seoMetadata":124,"parents":126,"keywords":125,"url":132},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":125,"description":6},"personal guarantee",[127,128,129],{"label":98,"url":99},{"label":101,"url":102},{"label":130,"url":131},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":134,"descriptionCustom":6,"label":135,"pages":136,"size":9,"extension":10,"preview":137,"thumb":138,"svgFrame":139,"seoMetadata":140,"parents":142,"keywords":141,"url":147},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":141,"description":6},"non disclosure agreement nda",[143,144],{"label":33,"url":115},{"label":145,"url":146},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":149,"descriptionCustom":6,"label":150,"pages":151,"size":152,"extension":10,"preview":153,"thumb":154,"svgFrame":155,"seoMetadata":156,"parents":157,"keywords":160,"url":161},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[158,159],{"label":33,"url":115},{"label":33,"url":115},"security agreement","/template/security-agreement-D915",{"description":163,"descriptionCustom":6,"label":164,"pages":165,"size":9,"extension":10,"preview":166,"thumb":167,"svgFrame":168,"seoMetadata":169,"parents":171,"keywords":170,"url":178},"COLLATERAL AGREEMENT This Collateral Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [NAME OF PLEDGOR] (the \"Pledgor\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF COLLATERAL AGENT] (the \"Collateral Agent\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Collectively, the Pledgor and Collateral Agent shall be referred to as the \"Parties.\" WHEREAS, the Pledgor and [NAME] (the \"Pledgee\") have entered into certain agreements pursuant to which the Pledgor has agreed to pledge certain property as Collateral (the \"Collateral\") as described in Exhibit A to the Pledgee to secure the Pledgor's Obligations to the Pledgee; WHEREAS, the Pledgor and the Pledgee have requested the Collateral Agent to hold the property pledged as Collateral and to perform certain other functions as more fully described herein; NOW, THEREFORE, the Parties agree as follows: APPOINTMENT AND ACCEPTANCE The Pledgor hereby appoints [NAME] as its Collateral Agent for the purposes set forth herein, and the Collateral Agent hereby accepts such appointment, subject to the terms and conditions set forth herein. COLLATERAL AND DELIVERY As security for the payment or performance, as the case may be, in full when due (whether at stated maturity, by acceleration or otherwise) of the Loan (other than contingent obligations), the Pledgor and Pledgee hereby confirm the pledge and grant to the Collateral Agent, its successors and permitted assigns of the security interest, for the ratable benefit of the Loan; and as security for the payment or performance, as the case may be, in full when due (whether at stated maturity, by acceleration or otherwise) of the Obligations (other than contingent obligations), the Pledgor hereby pledges and grants to the Collateral Agent, its successors and permitted assigns, for the ratable benefit, a security interest in all right, title or interest in or to any and all of the following assets and properties in each case, whether tangible or intangible, wherever located, and now owned or at any time hereafter acquired by the Pledgor (but excluding any Excluded Collateral), collectively, the \"Collateral.\" The description and details of the Collateral are mentioned in Exhibit A, which is attached to this Agreement. The Collateral shall be delivered to the Collateral Agent on the effective date and the receipt of the Collateral shall be acknowledged by the Collateral Agent. LOAN AND REPAYMENT This Loan is in the amount of [AMOUNT] at [SPECIFY THE RATE OF INTEREST] % interest per year, compounded for a period of [NUMBER OF YEARS] years. Payments of principal and interest in the amount of [AMOUNT], payable on the [SPECIFY DAY] day of each month, shall begin on [DATE], and the Loan shall be fully repaid no later than [DATE]. The Pledgor may prepay any portion or all of this Loan at any time without penalty. Any amounts paid in excess of the regular payment due shall be applied to reduce the principal amount of the Loan. DUTIES OF COLLATERAL AGENT Standard. The Collateral Agent undertakes to perform without gross negligence only such duties as are expressly set forth herein and no duties shall be implied. The Collateral Agent shall have no liability under and no duty to inquire as to the provisions of any law, regulation or agreement other than this Collateral Agreement. The Collateral Agent shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document. The Collateral Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that the Collateral Agent's willful misconduct was the primary cause of any loss to any person. Reliance. The Collateral Agent may rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper Party or Parties. The Collateral Agent shall not incur any liability for following the instructions herein expressly provided for, or written instructions given by the Pledgor. Agents and Attorneys. The Collateral Agent may execute any of its powers and perform any of its duties hereunder directly or through agents or attorneys (and shall be liable only for the careful selection of any such agent or attorney) and may consult with counsel, accountants and other skilled persons to be selected and retained by it. The Collateral Agent shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons. Disputes. In the event that the Collateral Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or demands from any person which, in its opinion, conflict with any of the provisions of this Collateral Agreement or the directions of the Pledgor, it shall be entitled to refrain from taking any action and its sole Obligation shall be to keep safely all property held in Collateral until it shall be directed otherwise in writing by the Pledgee or by a final order or judgment of a court of competent jurisdiction. Consequential Damages. Anything in this Collateral Agreement to the contrary notwithstanding, in no event shall the Collateral Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. RESIGNATION AND REMOVAL The Collateral Agent may resign and be discharged from its duties or Obligations hereunder by giving [NUMBER OF DAYS] days' advance notice of such resignation, specifying a date when such resignation shall take effect. The Collateral Agent may be removed and discharged from its duties or Obligations hereunder by the Pledgor giving [NUMBER OF DAYS] days' advance notice of such removal and specifying a date when such removal shall take effect. If a successor as Collateral Agent shall be appointed and accept such appointment prior to the effective date of such resignation or discharge (the \"Effective Date\"), the Collateral Agent shall transfer the Collateral Fund to the successor, together with its information as to subaccounts. If no such successor is so appointed, the Collateral Agent shall turn over the Collateral Fund and its information about subaccounts to the Pledgor on the Effective Date. In either case, the Collateral Agent shall have the right to withhold and pay to itself from the Collateral Fund an amount equal to any amount due and owing to the Collateral Agent, plus any costs and expenses the Collateral Agent shall reasonably believe may be incurred by the Collateral Agent in connection with its resignation or removal. SUCCESSION UPON MERGER, ETC. OF COLLATERAL AGENT Any corporation into which the Collateral Agent in its individual capacity may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Collateral Agent in its individual capacity shall be a party, or any corporation to which substantially all the corporate trust business of the Collateral Agent in its individual capacity may be transferred, shall be the Collateral Agent under this Collateral Agreement without further act. COMPENSATION AND EXPENSES OF COLLATERAL AGENT","Collateral Agreement","7","https://templates.business-in-a-box.com/imgs/1000px/collateral-agreement-D13257.png","https://templates.business-in-a-box.com/imgs/250px/13257.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13257.xml",{"title":170,"description":6},"collateral agreement",[172,175],{"label":173,"url":174},"Human Resources","human-resources",{"label":176,"url":177},"Company Policies","company-policies","/template/collateral-agreement-D13257",false,{"seo":181,"reviewer":194,"legal_disclaimer":198,"quick_facts":199,"at_a_glance":201,"personas":205,"variants":230,"glossary":257,"clauses":291,"how_to_fill":341,"common_mistakes":382,"faqs":407,"industries":435,"comparisons":460,"diy_vs_lawyer":474,"jurisdictions":487,"related_template_ids_curated":508,"schema":517,"classification":518},{"meta_title":182,"meta_description":183,"primary_keyword":184,"secondary_keywords":185},"Secured Lumpsum Promissory Note Agreement Template (Free Word)","Free secured lumpsum promissory note template covering loan amount, collateral, repayment, default, and remedies. Used in 190+ countries. Free Word and PDF download.","secured promissory note template",[186,187,188,189,190,191,192,193],"secured lumpsum promissory note","promissory note template word","promissory note with collateral","secured loan agreement template","promissory note template free","secured promissory note agreement","business promissory note template","lump sum promissory note",{"name":195,"credential":196,"reviewed_date":197},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":200,"legal_review_recommended":198,"signature_required":198,"notarization_required":179},"advanced",{"what_it_is":202,"when_you_need_it":203,"whats_inside":204},"A Secured Lumpsum Promissory Note Agreement is a legally binding instrument in which a borrower unconditionally promises to repay a single lump-sum loan amount — plus agreed interest — to a lender by a specific due date, and pledges specific collateral to secure the obligation. This free Word download covers the principal amount, interest rate, maturity date, collateral description, default triggers, and lender remedies in one compact document you can edit online and export as PDF.\n","Use it when one party lends a defined sum to another in a single disbursement and both parties want the debt and the collateral securing it documented in a formally enforceable written instrument. It is appropriate for business loans between companies, shareholder or related-party loans, and private lending arrangements where a bank is not involved.\n","Parties and principal amount, interest rate and calculation method, maturity date, collateral description and security interest, representations and warranties, events of default, lender remedies upon default, governing law, and signature blocks for borrower and lender.\n",[206,210,214,218,222,226],{"title":207,"use_case":208,"icon_asset_id":209},"Private lenders and investors","Documenting a lump-sum loan to a business or individual with collateral protection","persona-investor",{"title":211,"use_case":212,"icon_asset_id":213},"Small business owners","Borrowing a fixed sum from a private party and pledging business assets as security","persona-small-business-owner",{"title":215,"use_case":216,"icon_asset_id":217},"Startup founders","Formalizing a shareholder or founder loan before institutional financing closes","persona-startup-founder",{"title":219,"use_case":220,"icon_asset_id":221},"Real estate investors","Securing a bridge loan or short-term lump-sum advance against a property interest","persona-real-estate-investor",{"title":223,"use_case":224,"icon_asset_id":225},"CFOs and finance managers","Documenting intercompany loans between affiliated entities with proper collateral terms","persona-cfo",{"title":227,"use_case":228,"icon_asset_id":229},"Attorneys and paralegals","Preparing a template-based secured note for client lending transactions","persona-attorney",[231,235,239,243,246,249,253],{"situation":232,"recommended_template":233,"slug":234},"Loan repaid in fixed monthly installments rather than a single lump sum","Secured Installment Promissory Note","secured-installment-note-D440",{"situation":236,"recommended_template":237,"slug":238},"Unsecured loan with no collateral pledged","Unsecured Promissory Note","promissory-note-D434",{"situation":240,"recommended_template":241,"slug":242},"Short-term bridge loan with a balloon payment at maturity","Balloon Payment Promissory Note","demand-for-payment-on-installment-promissory-note-D428",{"situation":244,"recommended_template":107,"slug":245},"Loan between business and its shareholder or director","shareholder-loan-agreement-D13239",{"situation":247,"recommended_template":248,"slug":238},"Real estate mortgage loan requiring a deed of trust","Mortgage Promissory Note",{"situation":250,"recommended_template":251,"slug":252},"Demand loan repayable whenever the lender calls it","Demand Promissory Note","demand-to-pay-promissory-note-D207",{"situation":254,"recommended_template":255,"slug":256},"Loan between two businesses governed by a full credit facility","Business Loan Agreement","loan-agreement-D417",[258,261,264,267,270,273,276,279,282,285,288],{"term":259,"definition":260},"Principal Amount","The original sum of money lent, before any interest accrues — the base amount the borrower must repay.",{"term":262,"definition":263},"Lump-Sum Repayment","A repayment structure in which the entire outstanding principal and accrued interest are paid in a single payment on the maturity date, rather than in periodic installments.",{"term":265,"definition":266},"Collateral","An asset pledged by the borrower to the lender as security for the loan; the lender may seize or sell it if the borrower defaults.",{"term":268,"definition":269},"Security Interest","The lender's legal right to take possession of or liquidate the collateral if the borrower fails to repay the note as agreed.",{"term":271,"definition":272},"Maturity Date","The specific calendar date on which the full outstanding balance — principal plus accrued interest — becomes due and payable.",{"term":274,"definition":275},"Event of Default","A defined trigger — such as non-payment, insolvency, or breach of a covenant — that entitles the lender to accelerate repayment and enforce remedies against the collateral.",{"term":277,"definition":278},"Acceleration Clause","A provision allowing the lender to declare the entire unpaid balance immediately due upon an event of default, rather than waiting for the original maturity date.",{"term":280,"definition":281},"UCC Financing Statement","A public filing (Form UCC-1) made with a US state authority to give notice of a lender's security interest in personal property collateral.",{"term":283,"definition":284},"Default Interest Rate","A higher interest rate — typically 2–5 percentage points above the contract rate — that applies automatically to the unpaid balance after an event of default.",{"term":286,"definition":287},"Usury","The charging of interest at a rate exceeding the maximum permitted by law in the applicable jurisdiction; a note with a usurious rate is partly or wholly unenforceable.",{"term":289,"definition":290},"Recourse","The lender's right to pursue the borrower's personal or other assets beyond the pledged collateral if the collateral value is insufficient to satisfy the debt.",[292,297,302,307,312,317,322,327,332,336],{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"Parties, Principal Amount, and Loan Date","Identifies the lender and borrower as legal entities or individuals, states the exact principal amount disbursed, and records the date funds are advanced.","FOR VALUE RECEIVED, [BORROWER FULL LEGAL NAME] ('Borrower'), promises to pay to the order of [LENDER FULL LEGAL NAME] ('Lender'), the principal sum of $[AMOUNT] USD, advanced on [LOAN DATE].","Using trade names or nicknames instead of registered legal entity names. If the named borrower does not match the collateral owner of record, perfecting the security interest becomes legally complicated.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Interest Rate and Calculation","States the annual interest rate, whether it is fixed or variable, and how interest accrues — typically on a 365-day actual-day basis — from the loan date to the maturity date.","The outstanding principal shall bear interest at the rate of [X]% per annum, calculated on a 365-day year, accruing daily from the Loan Date until paid in full.","Omitting the calculation basis (360-day vs. 365-day year). The difference can amount to meaningful extra interest over a multi-year term and create disputes at payoff.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Maturity Date and Lump-Sum Payment Obligation","Sets the single due date on which the borrower must repay the full principal balance plus all accrued and unpaid interest in one payment.","The entire outstanding principal balance, together with all accrued and unpaid interest, shall be due and payable in full on [MATURITY DATE] ('Maturity Date').","Failing to state whether the maturity date can be extended by agreement. Without a written extension clause, any verbal rollover arrangement lacks enforceability.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Collateral Description and Grant of Security Interest","Identifies the specific asset or assets pledged as collateral and formally grants the lender a security interest in that collateral to secure repayment of the note.","To secure payment of this Note, Borrower hereby grants to Lender a security interest in the following collateral: [DESCRIPTION OF COLLATERAL] ('Collateral'), together with all proceeds and replacements thereof.","Using a vague collateral description such as 'all business assets.' A description that is too broad may be rejected in a UCC filing or challenged in bankruptcy as unperfected.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"Perfection and Priority of Security Interest","Obligates the borrower to cooperate in filing the documents needed to make the lender's security interest effective against third parties — such as UCC-1 financing statements or property registrations.","Borrower shall execute and deliver all instruments and documents, including UCC financing statements, as Lender may reasonably request to perfect and maintain the priority of Lender's security interest in the Collateral.","Signing the note but never filing the UCC-1. An unfiled security interest is unperfected — meaning the lender has no priority over a subsequent creditor or bankruptcy trustee.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Representations and Warranties","The borrower confirms that it owns the collateral free of prior liens, has authority to enter the agreement, and is not in violation of any other obligation that would impair repayment.","Borrower represents and warrants that: (a) Borrower has good and marketable title to the Collateral, free of all liens and encumbrances except as disclosed; (b) Borrower has full authority to execute this Note; and (c) execution of this Note does not violate any agreement to which Borrower is a party.","Omitting a representation that no prior liens exist on the collateral. If a prior creditor has a perfected security interest, the new lender may be subordinated and recover little or nothing on default.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Events of Default","Lists the specific conditions that trigger default — typically non-payment at maturity, insolvency, voluntary bankruptcy, breach of representations, or material adverse change — entitling the lender to exercise remedies.","Each of the following shall constitute an Event of Default: (a) failure to pay any amount due under this Note within [X] days of the due date; (b) Borrower becomes insolvent or makes an assignment for the benefit of creditors; (c) commencement of bankruptcy or receivership proceedings against Borrower; (d) any representation in this Note proves materially false.","Defining default as non-payment only. Omitting insolvency and bankruptcy triggers means the lender cannot accelerate until the maturity date passes — even if the borrower is financially collapsing.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Acceleration and Lender Remedies","Upon an event of default, gives the lender the right to declare the full outstanding balance immediately due and to enforce the security interest — including seizure and sale of collateral — plus seek a deficiency judgment for any shortfall.","Upon any Event of Default, Lender may, at its option: (a) declare the entire unpaid principal balance and all accrued interest immediately due and payable; (b) exercise all rights of a secured party under applicable law, including selling the Collateral; and (c) pursue any other remedy available at law or in equity.","No deficiency remedy clause. If the collateral sells for less than the outstanding balance, the lender needs explicit authority to pursue the borrower for the remaining amount.",{"name":283,"plain_english":333,"sample_language":334,"common_mistake":335},"Specifies the higher interest rate that applies automatically to the unpaid balance from and after an event of default — intended to compensate the lender and incentivize prompt cure.","From and after an Event of Default, the outstanding principal balance shall bear interest at the Default Rate of [X + 5]% per annum until paid in full, regardless of any judgment obtained.","Setting the default rate above the jurisdiction's usury ceiling. A default rate that violates usury law may cause the court to reduce all interest on the note, including the contract rate.",{"name":337,"plain_english":338,"sample_language":339,"common_mistake":340},"Governing Law, Waiver of Jury Trial, and Entire Agreement","Specifies the jurisdiction whose law governs the note, optionally waives jury trial in favor of bench proceedings, confirms the note is the entire agreement between the parties, and provides that modifications require a signed writing.","This Note is governed by the laws of [STATE / PROVINCE]. Borrower waives the right to a jury trial for any dispute arising hereunder. This Note constitutes the entire agreement of the parties and may not be modified except by a written instrument signed by both parties.","Choosing a governing law with no connection to either party's location or the collateral's situs. Courts may decline to apply a chosen law that has no reasonable relationship to the transaction.",[342,347,352,357,362,367,372,377],{"step":343,"title":344,"description":345,"tip":346},1,"Enter legal names and contact details for both parties","Use each party's full registered legal name — corporation, LLC, or individual's legal name as on government ID. Include the state or country of formation for entities and the principal address for both parties.","Cross-check the borrower's name against the collateral's title records before completing the document — any mismatch will complicate perfection.",{"step":348,"title":349,"description":350,"tip":351},2,"State the principal amount and loan disbursement date","Enter the exact dollar amount being advanced and the date funds will be or were transferred to the borrower. If the advance is conditional on signing, note that funds are advanced simultaneously with execution.","Confirm the loan amount in both numerals and written words — e.g., '$50,000 (Fifty Thousand Dollars)' — to prevent alteration disputes.",{"step":353,"title":354,"description":355,"tip":356},3,"Set the interest rate and confirm it is below the usury ceiling","Enter the annual interest rate as a fixed percentage. Before finalizing, verify the rate does not exceed the maximum rate permitted in the governing jurisdiction for commercial loans between the relevant parties.","Commercial usury ceilings vary widely — from 10% in some US states to 25%+ in others. Look up the rate for the borrower's state before drafting.",{"step":358,"title":359,"description":360,"tip":361},4,"Set the maturity date","Enter the specific calendar date on which the entire principal and accrued interest become due. For lump-sum notes, this single date drives the entire repayment structure — choose it carefully in light of the borrower's expected cash flow.","Build in a 5–10 day grace period for payment before default triggers activate — this reduces administrative disputes over wire transfer timing.",{"step":363,"title":364,"description":365,"tip":366},5,"Describe the collateral precisely","Identify the collateral by type, serial number, location, or legal description — whatever is specific enough for a third party to identify the asset unambiguously. For real property, use the full legal description from the deed.","For personal property, match the collateral description exactly to what will appear on the UCC-1 financing statement to ensure the filing covers the same assets.",{"step":368,"title":369,"description":370,"tip":371},6,"Complete the default and acceleration provisions","Review and confirm the list of default triggers — non-payment, insolvency, misrepresentation — and the remedies available to the lender. Set the default interest rate at a level that compensates the lender without exceeding usury limits.","Include a written cure period (e.g., 10 business days) for payment defaults before acceleration kicks in — this is standard in commercial lending and reduces litigation risk.",{"step":373,"title":374,"description":375,"tip":376},7,"Execute the note and file the UCC-1","Both parties sign the note before or at the time of fund disbursement. Within a few business days of signing, file a UCC-1 financing statement in the borrower's state of formation to perfect the security interest.","File the UCC-1 in the borrower's state of organization (not the collateral's location) for most personal property under Article 9 of the UCC.",{"step":378,"title":379,"description":380,"tip":381},8,"Retain executed originals and set a calendar reminder for maturity","Each party retains a signed original. Set a calendar reminder at least 30 days before the maturity date to contact the borrower and confirm repayment is on track or negotiate an extension in writing.","Any agreed extension of the maturity date must be documented in a signed written amendment — verbal extensions are unenforceable in most jurisdictions.",[383,387,391,395,399,403],{"mistake":384,"why_it_matters":385,"fix":386},"Failing to file the UCC-1 financing statement","Without filing, the security interest is unperfected — meaning a bankruptcy trustee or a subsequent creditor with a filed lien can take priority over the lender's claim against the collateral.","File a UCC-1 in the borrower's state of organization within five business days of signing. Keep the acknowledgment copy as proof of perfection date.",{"mistake":388,"why_it_matters":389,"fix":390},"Setting an interest rate above the applicable usury ceiling","A usurious interest rate can make the note unenforceable in whole or in part, and in some jurisdictions the lender forfeits all interest — not just the excess — as a penalty.","Confirm the commercial usury limit for the governing jurisdiction before finalizing the rate. For interstate transactions, choose a governing law with a permissive rate ceiling and ensure that choice is legally supportable.",{"mistake":392,"why_it_matters":393,"fix":394},"Using a vague or overinclusive collateral description","A collateral description like 'all assets' or 'equipment' without further specifics may be rejected during UCC filing or challenged in bankruptcy as insufficiently identified.","Describe each collateral item by category, manufacturer, serial number, or legal description — specific enough that an independent third party could identify it without asking the parties.",{"mistake":396,"why_it_matters":397,"fix":398},"Executing the note after funds are already disbursed","In several jurisdictions, a promissory note signed after the loan is made may lack consideration, making it unenforceable or reducing its standing in a deficiency proceeding.","Always sign the note at the time of or before fund disbursement. If circumstances require a post-advance note, recite the prior advance explicitly as consideration in the note's opening recitals.",{"mistake":400,"why_it_matters":401,"fix":402},"Omitting insolvency and bankruptcy as events of default","If default is limited to non-payment at maturity, the lender cannot accelerate even when the borrower files for bankruptcy — losing the ability to act before the automatic stay freezes all enforcement.","Include insolvency, voluntary or involuntary bankruptcy, receivership, and general assignment for the benefit of creditors as automatic events of default triggering immediate acceleration.",{"mistake":404,"why_it_matters":405,"fix":406},"No written cure period for payment default","Immediate acceleration on a single day of non-payment invites litigation over wire delays or minor administrative errors, and courts may view the remedy as disproportionate.","Include a 5–10 business day cure period for payment defaults before the acceleration right activates — this is market-standard and reduces unnecessary dispute.",[408,411,414,417,420,423,426,429,432],{"question":409,"answer":410},"What is a secured lumpsum promissory note?","A secured lumpsum promissory note is a written, unconditional promise by a borrower to repay a specific amount — disbursed in a single advance — plus interest, to a lender by a defined maturity date. Unlike an unsecured note, it is backed by collateral the lender can seize and liquidate if the borrower defaults. It is one of the most common instruments used in private lending, business financing, and intercompany loan arrangements.\n",{"question":412,"answer":413},"What is the difference between a secured and an unsecured promissory note?","A secured promissory note is backed by specific collateral — equipment, real property, receivables, or other assets — giving the lender a legal right to take and sell that collateral if the borrower does not repay. An unsecured note carries no such pledge; if the borrower defaults, the lender must obtain a judgment and pursue collection through general creditor remedies. Secured notes command lower interest rates because the lender bears less recovery risk.\n",{"question":415,"answer":416},"What collateral can be used to secure a promissory note?","Almost any tangible or intangible asset with identifiable value can serve as collateral: real estate, vehicles, machinery, inventory, accounts receivable, intellectual property, securities, or ownership interests in a business entity. The key requirement is that the collateral is clearly described in the note and that any required public filing — UCC-1 for personal property, deed of trust for real estate — is made to perfect the lender's security interest.\n",{"question":418,"answer":419},"Do I need to file a UCC-1 for a secured promissory note?","For personal property collateral in the United States, yes — filing a UCC-1 financing statement in the borrower's state of organization is required to perfect the security interest against third parties. Without it, the lender's claim is unperfected and loses priority to a bankruptcy trustee or any creditor who does file. Real property collateral requires a separate instrument such as a mortgage or deed of trust recorded in the county where the property is located.\n",{"question":421,"answer":422},"Is a promissory note legally binding without notarization?","In most jurisdictions, a promissory note is generally enforceable as a binding contract when signed by the borrower without requiring notarization. However, notarization or witness signatures may be required in certain states or provinces, for real-property-secured notes, or when the note must be recorded in a public registry. Consider having the note notarized as a best practice for higher-value transactions or when the borrower's signature may later be disputed.\n",{"question":424,"answer":425},"What happens when a borrower defaults on a secured promissory note?","When a defined event of default occurs — typically non-payment by the maturity date or at the end of any cure period — the lender may accelerate the full outstanding balance, making it immediately due. The lender can then exercise rights as a secured party, including repossessing and selling the collateral under applicable law (UCC Article 9 in the US) and pursuing the borrower for any deficiency if the collateral proceeds do not cover the full debt.\n",{"question":427,"answer":428},"What interest rate should I use in a promissory note?","The appropriate rate depends on the transaction risk, market conditions, and the usury ceiling in the governing jurisdiction. For commercial loans between business entities, rates typically range from 6% to 18% per annum. Confirm that the rate — including any default rate — does not exceed the applicable usury limit before finalizing the document, as a usurious rate can invalidate the note's interest provisions and, in some states, the entire note.\n",{"question":430,"answer":431},"Can a promissory note be modified after it is signed?","Yes, but any modification — including an extension of the maturity date, a reduction in the interest rate, or a change in collateral — must be documented in a signed written amendment to be enforceable. Verbal agreements to modify a promissory note are generally unenforceable under the statute of frauds, and an integration clause in the original note typically bars evidence of prior oral agreements.\n",{"question":433,"answer":434},"Do I need a lawyer to prepare a secured promissory note?","For straightforward private loans between businesses in a single jurisdiction, a well-drafted template is typically sufficient. A lawyer should review or draft the note when the loan amount exceeds $100,000, when the collateral is real property, when the borrower is in a heavily regulated industry, when multiple jurisdictions are involved, or when the transaction involves complex security structures such as a priority intercreditor arrangement.\n",[436,440,444,448,452,456],{"industry":437,"icon_asset_id":438,"specifics":439},"Real Estate","industry-real-estate","Bridge loans secured by property equity, with a deed of trust or mortgage filed alongside the note to perfect the lender's interest against the title record.",{"industry":441,"icon_asset_id":442,"specifics":443},"Manufacturing and Equipment","industry-manufacturing","Equipment purchase loans secured by the machinery itself, with a UCC-1 filed against the serial numbers and a cross-default clause tied to any senior credit facility.",{"industry":445,"icon_asset_id":446,"specifics":447},"Professional Services","industry-professional-services","Short-term working capital loans secured by accounts receivable, with a blanket lien on AR and a covenant requiring the borrower to maintain minimum receivables balance.",{"industry":449,"icon_asset_id":450,"specifics":451},"Technology / SaaS","industry-saas","Intercompany or founder loans secured by IP assets or equity pledges, requiring specific UCC collateral descriptions for software, patents, and trademarks.",{"industry":453,"icon_asset_id":454,"specifics":455},"Retail and E-commerce","industry-retail","Inventory-secured short-term notes with field audit rights for the lender to verify collateral value and an automatic borrowing-base reduction if inventory levels fall below threshold.",{"industry":457,"icon_asset_id":458,"specifics":459},"Construction","industry-construction","Project-specific draw loans secured by a lien on the project property, with loan proceeds held in a controlled disbursement account and released against completed milestones.",[461,464,467,470],{"vs":237,"vs_template_id":462,"summary":463},"D{UNSECURED_PROMISSORY_NOTE_ID}","An unsecured promissory note contains the same payment promise but is not backed by any pledged asset. If the borrower defaults, the lender must sue for a money judgment and collect through general creditor remedies with no priority claim on specific property. Secured notes provide significantly stronger recovery protection and typically carry a lower interest rate as a result.",{"vs":255,"vs_template_id":465,"summary":466},"business-loan-agreement-D13040","A business loan agreement is a comprehensive multi-page credit contract covering conditions precedent, financial covenants, representations, and detailed event-of-default provisions typically used in formal bank lending. A secured promissory note is a simpler instrument — it documents the payment promise and collateral pledge in a single document without the extensive covenant package. Use a full loan agreement when the lender is an institution or the facility involves ongoing borrowing; use the note for a single discrete lump-sum advance.",{"vs":107,"vs_template_id":468,"summary":469},"shareholder-loan-agreement-D13042","A shareholder loan agreement governs loans from a shareholder to their own company, addressing subordination to senior debt, interest on related-party loans, and tax implications of imputed interest. A secured lumpsum promissory note is appropriate when the parties are at arm's length or when the shareholder lender requires collateral protection. Related-party loans often require additional tax documentation that a standalone note does not provide.",{"vs":471,"vs_template_id":472,"summary":473},"Installment Promissory Note","D{INSTALLMENT_PROMISSORY_NOTE_ID}","An installment promissory note structures repayment in periodic payments — monthly, quarterly, or annually — rather than in a single balloon at maturity. Lump-sum notes are simpler to administer but require the borrower to accumulate the full payoff amount by maturity, creating refinancing risk. Installment notes match repayment to ongoing cash flow and are better suited for longer loan terms or borrowers with predictable periodic revenue.",{"use_template":475,"template_plus_review":479,"custom_drafted":483},{"best_for":476,"cost":477,"time":478},"Private lump-sum loans between businesses or individuals under $100,000 secured by personal property in a single US state or Canadian province","Free","20–30 minutes",{"best_for":480,"cost":481,"time":482},"Loans of $100,000–$500,000, real-property collateral, cross-border transactions, or any note where the lender relies heavily on the collateral for recovery","$400–$900","2–5 days",{"best_for":484,"cost":485,"time":486},"Loans above $500,000, complex multi-collateral structures, intercreditor arrangements, or borrowers in regulated industries such as banking or healthcare","$2,000–$8,000+","1–3 weeks",[488,493,498,503],{"code":489,"name":490,"flag_asset_id":491,"note":492},"us","United States","flag-us","UCC Article 9 governs security interests in personal property; perfection requires filing a UCC-1 in the borrower's state of organization. Real property collateral requires a mortgage or deed of trust recorded in the county of the property's location. Usury ceilings vary significantly by state — California's commercial rate ceiling differs from New York's, and some states exempt loans above a threshold amount from usury limits entirely. Federal law governs notes involving federally chartered banks.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"ca","Canada","flag-ca","Security interests in personal property are governed by provincial Personal Property Security Acts (PPSAs), with registration required in the province of the debtor's location. Real property security requires a mortgage or hypothec registered in the applicable land registry. Interest rates exceeding 60% per annum are criminally usurious under the Criminal Code of Canada, applicable nationwide. Quebec transactions are governed by the Civil Code of Quebec, which uses a 'hypothec' rather than a UCC-style security interest.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"uk","United Kingdom","flag-uk","Security over company assets in England and Wales typically requires registration at Companies House within 21 days of creation or it becomes void against a liquidator and other creditors. Individual borrowers benefit from Consumer Credit Act protections if the loan is below £25,000; above that threshold, commercial terms generally apply. Scotland uses a distinct legal system — security over moveable property follows Scots law rules on pledge and assignation in security rather than English charge law.",{"code":504,"name":505,"flag_asset_id":506,"note":507},"eu","European Union","flag-eu","Security interest regimes differ significantly across EU member states — France uses the 'nantissement,' Germany the 'Sicherungsübereignung,' and Spain the 'prenda.' There is no EU-wide equivalent of the UCC. The Late Payment Directive sets a default statutory interest rate of 8 percentage points above the ECB reference rate for B2B transactions. Consumer loans across the EU are subject to the Consumer Credit Directive, which imposes mandatory disclosure and cooling-off rights that may apply to smaller loans regardless of the note's commercial framing.",[256,245,509,510,511,252,512,512,513,514,515,516],"personal-guarantee-D405","non-disclosure-agreement-nda-D12692","security-agreement-D915","secured-lumpsum-promissory-note-agreement-D13041","collateral-agreement-D13257","non-profit-partnership-agreement-D14023","release-of-lien-D12665","notice-of-debt-acknowledgment-D390",{"emit_how_to":198,"emit_defined_term":198},{"primary_folder":99,"secondary_folder":519,"document_type":520,"industry":521,"business_stage":522,"tags":523,"confidence":529},"loans-and-promissory-notes","agreement","general","all-stages",[524,525,526,527,528],"legal","promissory-note","secured-loan","collateral","borrower-lender",0.95,"\u003Ch2>What is a Secured Lumpsum Promissory Note Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Secured Lumpsum Promissory Note Agreement\u003C/strong> is a legally binding written instrument in which a borrower makes an unconditional promise to repay a single, fixed sum — disbursed in one advance — plus agreed interest to a lender by a specified maturity date, and pledges identifiable collateral to secure that obligation. Unlike an installment note, the entire outstanding balance falls due in one lump-sum payment on the maturity date rather than across periodic payments. Unlike an unsecured note, the lender holds a security interest in specific property that can be seized and sold if the borrower fails to pay. Together, the lump-sum structure and the collateral pledge make this instrument one of the most straightforward yet legally significant tools in private and commercial lending.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>A handshake loan — or even an email confirming the amount and interest rate — leaves both parties exposed in ways that become apparent only when something goes wrong. Without a signed, collateral-backed note, the lender has no perfected priority claim against the borrower's assets in bankruptcy, no documented default rate to apply to overdue balances, and no unambiguous maturity date to anchor an enforcement action. For the borrower, a properly drafted note prevents the lender from claiming a higher rate or earlier due date than was agreed. Filing the corresponding UCC-1 or property security instrument the week after signing converts a contractual promise into a publicly recorded priority claim — one that survives the borrower's insolvency and defeats later creditors. This template gives both lender and borrower a complete, enforceable instrument covering every material term, so that a straightforward private loan transaction does not become a costly dispute when the repayment date arrives.\u003C/p>\n",1781185959574]