Updated April 11, 2022
A Tennessee secured promissory note is a document designed to give structure and legality to a transaction between a lender and borrower involving a loaned amount of money. Because the note is signed by both parties and a witness, it holds legal weight that can be used in a court of law if necessary. This template is incorporated with security, which is an item in the borrower’s possession that is set aside at the beginning of the agreement in case the borrower defaults on the loan. The item in security is given to the lender to help cover the remaining unpaid balance.