Tennessee Secured Promissory Note Template

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The Tennessee secured promissory note is a document designed to give structure and legality to a transaction between a lender and borrower regarding a loaned amount of money. Because this template is signed by both parties and a witness, it holds legal weight that can be used in a court of law if need be. 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 and is used if the borrower cannot recover from a default. The item in security is given to the lender to help cover the remaining unpaid balance.

How to Write

Step 1 – At the top of the template, begin by entering the current date. Then, enter information regarding both parties and the note itself into the empty text boxes. Once this has been completed, head to the second step below.

Step 2 – Starting with the first (1) section, select the payment method that will be used for the duration of the agreement. Out of the three possible options, two utilize installments. Installments require the borrower to make weekly or monthly payments toward the balance for a scheduled amount of time. If one of these options were selected, enter the date of the first payment and check the box next to either weekly or monthly payments at the bottom of the section.

Step 3 – In the second (2) section, enter the final due date that the entire balance will be due on. Also due on this date is any accrued interest and issued late fees.

Step 4 – Next, go to the third (3) section and enter the interest rate that will go into effect if the borrower enters into default or misses a payment by more than fifteen days.

Step 5 – In the sixth (6) section, enter all required information regarding late fees into the two empty text boxes.

Step 6 – Proceeding to the eighth (8) section, enter the amount of days that need to pass after a default has occurred before the lender can issue acceleration.

Step 7 – Head to the last page of the template and enter the item that will serve as security for the transaction. Items typically used as security are homes, vehicles, and boats, although any physical item may be used as long as it has similar value as to the note.

Step 8 – Directly below the seventeenth (17) section, enter the current date and the printed and signed names of both parties plus the witness. Once all signatures have been recorded, the template will go into full legal effect.