Illinois Secured Promissory Note Template

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The Illinois secured promissory note binds two parties to a contract requiring a borrower (of a monetary balance) to reimburse a lender the loaned amount of money plus interest over time. Areas of the document that will need to be agreed upon consist of payment types,  interest rates, items to be used as security, and many other areas. The lender and borrower will want to check [815 ILCS 205/4] to ensure the interest rates they choose for the agreement are legal in the state of Illinois.

How to Write

Step 1 – Starting at the top of the first page, enter the current date, the names, and addresses of both the lender and borrower and the full balance of the loan as well as the interest rate.

Step 2 – In section one (1), select how the borrower will pay back the balance to the lender. Options include No Installments (one single payment with interest), Installments (monthly or weekly payments including interest), or Interest Only Payments (monthly or weekly payments consisting of interest only).

If a payment type that utilizes installments is selected select either weekly or monthly payments at the bottom of the first section.

Step 3 – For sections two (2) and three (3), begin by entering the final due date for the balance. This includes the full balance of the note, any late fees, and accumulated interest. Next, enter the interest rate that will go into effect if the borrower defaults on the balance. This rate can go into effect if the borrower fails to make a payment within fifteen (15) days or fails to pay the full balance by the final due date. This interest rate will stay in effect until the borrower is no longer in default.

Step 4 – In section six (6), enter the cost of a late fee and the amount of days that have to pass after a payment is due before one can be issued.

Step 5 – Proceeding to section eight (8), enter the number of days that are required to pass after a borrower enters into default before the lender can issue an acceleration.

Step 6 – In section seventeen (17), enter the items that will be used as security if the borrower defaults on the balance. Items can range from autos to homes in the possession of the borrower.

At the bottom of the page, enter the current date followed by the printed and signed names of the lender, the borrower, and the witness to the agreement.