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Maine Secured Promissory Note Template

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The Maine secured promissory note binds two individuals into a contract that requires one party (the borrower) to reimburse another party (the lender) an original balance plus interest. If the borrower fails to successfully pay back the loan and enters into default, the lender has the right to take the item(s) put into security. Items that are typically used as security are homes, boats, and vehicles.

How to Write

Step 1 – At the top of the document, enter the current date followed by personal information regarding the borrower and lender. Then, enter the total amount of the loaned balance as well as the interest rate.

Step 2 – Head to section one (1). Here, select the payment method for the agreement. There are three plausible options to choose from, with the ‘Installments’ option being the most typical. If an option with installments is selected, proceed to the bottom of the first section and select either weekly or monthly payments.

Step 3 – At section two (2), enter the final due date for the entire balance plus any accrued interest and any possible late fees.

Step 4 – For the third (3) section, enter the interest rate (percentage) that automatically goes into effect in the case of a default on the balance. This rate can also go into effect if the borrower fails to make a payment within fifteen (15) days of a payment due date.

Step 5 – For sections six (6) and eight (8), begin by entering all information regarding late fees, including the time span required to pass before a late fee can be issued and the late fee cost. Then, enter the time span that needs to pass before an acceleration can be issued. An acceleration requires all outstanding debts to be due immediately, and can only be issued if the borrower has been in default.

Step 6 – Head to section seventeen (17) and enter the items that will be used as security in the agreement. Items typically consist of homes, vehicles, and boats.

Step 7 – To finalize and complete the note, enter the current date. Then, have the lender, the borrower, and the witness sign their names into the correct spots on the document.