Minnesota Secured Promissory Note Template

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The Minnesota secured promissory note is completed when one party plans on lending another party a monetary balance with the expectation of getting that balance returned with interest. This template organizes and adds legality to the transaction and helps prevent the lender from incurring unnecessary financial losses. Also included is a section on security, which sets aside a personal possession of the borrower to be given to the lender in the case of a default.

How to Write

Step 1 – Enter both parties personal information at the top of the first page. Then, enter the full balance of the note as well as the interest rate.

Step 2 – Proceed to the first (1) section. Here, select the payment type that will be utilized for the note. There are three possible payment options:

  • No Installments – The borrower makes a single payment (on the final due date) consisting of the full balance and interest.
  • Installments – The borrower makes weekly or monthly payments toward the balance.
  • Interest Only Payments – The borrower makes weekly or monthly payments consisting of only interest until the balance is fully reimbursed.

Select either weekly or monthly payments at the bottom of the first section if an option using installments was selected.

Step 3 – At the second (2) section, enter the date that the full balance will be due in addition to any accrued interest and/or late fees.

Step 4 – In section three (3), enter the interest rate that goes into effect in the case of a default on the balance. This requires the borrower to miss a payment by fifteen (15) days or miss the deadline for the final due date.

Step 5 – In sections six (6) and eight (8), begin by entering the cost of a late fee and the time span required to pass before one can be issued. For the eighth section, enter how many days need to pass after the borrower enters into default before an acceleration can be issued. An acceleration makes all outstanding payments due immediately.

Step 6 – Head to section seventeen (17). Here, enter the item that will be used as security for the agreement. Items typically utilized for security are homes, vehicles, or boats (although any physical item can be used it if has similar value to the loaned balance).

Step 7 – On the last page of the agreement, enter the following information into the designated text boxes:

  • Current day, month, and year
  • Lender’s Signature and Printed Name
  • Borrower’s Signature and Printed Name
  • Witness’ Signature(s) and Printed Name(s)

Once this has been completed, the agreement will go into full effect.