Updated April 11, 2022
A Michigan secured promissory note brings two parties together in a binding contract that outlines how a borrower of a monetary balance will reimburse a lender. The lender in the transaction makes a profit by receiving interest on top of the original loaned balance. Also included in the template is a section for security, which sets aside an asset such as a home, vehicle, or boat to be granted to the lender in the case of a default.