Arizona Secured Promissory Note Template

The Arizona secured promissory note is a contractual document that is entered into by a lender and a borrower. The document establishes the specific terms of a loan (payment details, term length, interest rates, etc.). Secured notes require that the borrower provide collateral. If the borrower defaults on the note, the lender has the legal right to file a lawsuit, take possession of the collateral, or pursue other repayment methods.

If the borrower satisfies the terms of the note and fully repays the loan, the lender is required to release them of their obligations via writing. These documents (note/release) require the signatures of two witnesses in order to be valid.

How to Write

Step 1 – Download the template via the links on this page. The document is available in .PDF or Word format.

Step 2 – Submit the following details in the top section of the first page:

  • Date
  • Name of borrower
  • Address of borrower
  • Name of lender
  • Address of lender
  • Principal sum
  • Interest rate in accordance with AZ 44-1201.

Step 3 – Payments: Check the box that corresponds to the payment method the borrower will be required to use. The payment methods are as followed:

  • No Installments
  • Installments
  • Interest Only

If the payment method is “Installments” or “Interest Only” then the payment schedule must be selected out of the following options:

  • Monthly (fill in the date of each month that the payment will be due on).
  • Weekly (fill in the day of the week that each payment will be due on).

Step 4 – The due date must be entered in the “Due Date” section in dd/m/yy format.

Step 6 – Interest Due in the Event of Default:

  • Review the subsection and fill in the interest rate.

Step 7 – Late Fees:

  • Fill in the number of days the borrower will have (after non payment) until the lender issues a late fee.
  • Enter the late fee amount.

Step 8 – Acceleration:

  • Enter the amount of time the borrower will have to cure their default. If the borrower does not cure the default within the specified time frame the lender can declare the entire principal sum due.

Step 9 – Security:

  • Provide a detailed description of the collateral/secured assets.

Step 10 – Signatures:

  • Lender must print/sign their name.
  • Borrower must print/sign their name.
  • Witnesses must print/sign their names.
Arizona Secured Promissory Note - Adobe PDF - Microsoft Word

Arizona Secured Promissory NoteAdobe PDFMicrosoft Word