Virginia Secured Promissory Note Template

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The 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 previously loaned amount plus interest in a predetermined time frame. This note includes security, which adds a layer of protection for the lender by guaranteeing him or her an item such as a home, vehicle, or boat (of the borrower’s possession) if the borrower cannot make payments on the note.

How to Write

Step 1 – At the top of the document, enter the current date followed by the names and addresses of both the lender and borrower. Then, enter the full balance of the note and it’s associated interest rate.

Step 2 – Head to the first (1) section and select the payment method that the borrower will be required to follow for the duration of the agreement. There are three possible options to choose from, which include No Installments (borrower makes a single lump-sum payment to the lender including interest), Installments (borrower makes routine weekly or monthly payments to the lender), or Interest Only Payments (borrower makes payments that consist of only interest in either weekly or monthly increments).

Step 3 – In the second (2) and third (3) sections, begin by entering the date that the entire note balance will be due. Then, enter the interest rate that the borrower will be required to pay if he or she enters into default on the balance.

Step 4 – Heading to the sixth (6) section, enter the time frame and cost of a late fee into the two empty text boxes.

Step 5 – In section eight (8), enter the number of days that the lender needs to wait after a default has occurred before he or she can issue an acceleration to the borrower. Acceleration requires the borrower to pay all outstanding debt immediately.

Step 6 – Proceed to the seventeenth (17) section and write the item that will be used as security into the empty text box. This item should be of similar value as to the amount of the note.

Step 7 – Next, enter the current date followed by the printed and signed names of both parties plus a witness. Once all pertinent names have been recorded in the template, the note will enter into full effect and the borrower will be liable for making timely payments to the lender.