Updated March 14, 2022
An Alabama secured promissory note is a promise to pay an individual or an entity for an amount of money loaned. The payback structure is determined by the parties with a maximum interest rate that is governed by the State known as a “Usury Rate”. The borrower may want to make sure that they are able to pay back the amount as with a secured note the lender usually has something that they will be allowed to take possession of if payment is not made. The most common types of security are homes, vehicles, and boats although any type of real or personal property may be used.