Updated April 11, 2022
A Virginia secured promissory note is a legal document binding a lender and a borrower into a contract requiring the borrower to reimburse the lender the loaned amount plus interest in a predetermined time frame. This note includes security, which adds a layer of protection for the lender by guaranteeing an asset in the borrower’s possession—such as a home, vehicle, or boat—if the borrower cannot make payments on the note.