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Kentucky Secured Promissory Note Template

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The Kentucky secured promissory note is a promise from a borrower to a lender that a loaned balance will be returned timely and in full. Once completed, the document holds legal weight and is incorporated with ‘security’ to help protect the lender from financial loss. The lender profits from the deal by receiving the original loaned balance back in addition to interest from weekly, monthly, or a single lump sum payment(s).

How to Write

Step 1 – In the empty text boxes on the top of the first page, enter the current date, the full names and addresses of the lender and borrower, and the full balance of the note plus the interest rate.

Step 2 – Head to section one (1). Put a check next to the payment type that the parties would like to use for the note. The options consist of No Installments (one single payment at a predetermined date), Installments (weekly or monthly payments towards the main balance plus interest), or Interest Only Payments (weekly or monthly payments of interest until the full balance is paid). If a payment method with installments is used, go to the bottom of the first section and select either weekly or monthly payments and the day the payment will be due.

Step 3 – In section two (2), enter the date that the full balance of the note will be due. This includes any accumulated interest and late fees.

Step 4 – In the third (3) section, enter the interest rate that goes into effect in the case of a default on the balance. This interest rate must be legal in the state of Kentucky; to ensure a legal interest rate has been chosen, check Ky. Stat. Title XXIX § 360.010. This interest rate will stay in effect until the borrower is no longer in default on the balance.

Step 5 – Go to section six (6). Here, enter how many days the borrower can go past a payment date. Then, enter the amount the borrower will be required to pay if he or she is charged a late fee.

Step 6 – In section eight (8), enter the number of days required to pass after a default until the lender can issue an acceleration to the borrower.

Step 7 – Head to section seventeen (17). Here, enter the item(s) that will be used as security for the note. Items can range from homes, vehicles, to boats.

Step 8 – Enter the date on the last page of the note. Then have the lender, borrower, and witness sign their names into the designated spots. Once this has been completed, the note will go into effect.