Delaware Secured Promissory Note Template

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The Delaware secured promissory note gives legal structure for loans between two parties as well as increases the lender’s security in the transaction. Both parties need to agree on the full balance being loaned, the interest rate associated with the balance, and other points of info such as the payment structure and cost of late fees.

How to Write

Step 1 – At the top of the document, the full names and addresses of both the lender and borrower is required followed by the full balance being loaned and the interest rate. Check with Delaware’s Usury rate found at (6 Del.C. § 2301(a)) to ensure you selected a legal interest rate.

Step 2 – Heading to section one (1), check the box next to the payment type the parties would like to utilize for the duration of the agreement. If a payment type with installments is selected, look to the bottom of the first section and select when payments should be made – either weekly or monthly.

Step 3 – For sections two (2) and three (3) enter the final due date of the entire balance followed by the interest rate that will go into effect in the case of a default.

Step 4 – For sections six (6) and eight (8) enter the cost of a late fee as well as the time required to pass until a late fee is issued. Then, for the eighth section, enter the number of days that have to pass after a default on the balance before the lender can issue an acceleration.

Step 5 – To finalize the agreement and begin the payback procedure, the last page needs to be dated, then the lender, borrower, and witness to the agreement need to print and sign their full names. Once the signatures have been written, the contract will go into effect.