Updated April 11, 2022
A Louisiana secured promissory note is a binding promise from one individual (the “borrower”) to pay back another individual (the “lender”) in a scheduled manner. The lender profits from the transaction by receiving interest on top of receiving the original loaned amount. If the borrower defaults on the balance, the lender has the option to obtain the item(s) put into security. An item used for security typically consists of a home, vehicle, or boat.