Arkansas Secured Promissory Note Template

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The Arkansas secured promissory note is a binding agreement that establishes the details of a loan between two (2) parties. Areas covered by the agreement include interest rates (which are dictated by the usury rate – Ark. Code Ann. § 4-57-104), penalties following late payments, and pertinent personal information regarding both parties. Additionally, the lender and borrower will establish the security for the agreement, which can be in the form of a home, vehicle(s), or other worthy possessions of the borrower.

How to Write

Step 1 – Before starting section 1 of the document, enter:

  • Names of the Lender and Borrower
  • Addresses of the Lender and Borrower
  • Total Amount being Loaned
  • Interest Rate for the Unpaid Balance

Step 2 – Looking at the first section of the document, check the type of payment method for the agreement. If you checked the “No Installments” box, proceed to Step 3 now. If not, enter the pay-back details the borrower will have to follow until the full balance is paid.

Step 3 – In section 2, enter the day, month, and year the full balance is due.

Step 4 – Proceeding to Section 3, enter the interest rate in the case of the borrower failing to pay the full balance by the due date or if the borrower waits over fifteen (15) days to make an installment.

Step 5 – In section 6 and 8, fill in the number of days until a late fee is issued on the borrower and the amount of the late fee itself. Then for section 8, enter the number of days in regard to acceleration.

Step 6 – Towards the bottom of the page at section 17, enter the security that will be used as insurance for the agreement. Items that are typically used are vehicles, home/land, or other physical items of worth.

To finalize the agreement, the date needs to be entered followed by both the Lender and Borrower’s signed and printed names. In addition, the witness’ signed and printed name needs to be written on the document.