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What makes a promissory note secured?

A secured promissory note is an agreement where the borrower puts something of value up as collateral to safeguard the value of the loan. In the event the borrower is unable to make payments and defaults on the loan, a secured promissory note empowers the lender to take possession of the collateral in lieu of payment.

Is a promissory note secured by land a mortgage note?

Promissory notes are different from mortgages. The note outlines the legal promise to pay while the mortgage creates a legal claim against the property being used as collateral for the loan.

What is a promissory note secured by?

Borrowers promise to pay is secured by a mortgage, deed of trust or similar security instrument that is dated the same date as this Note and called the Security Instrument. The Security Instrument protects the Lender from losses, which might result if Borrower defaults under this Note.