Illinois Secured Promissory Note Template

The¬†Illinois Secured Promissory Note Template is available for download in MS Word or .PDF format. Secured promissory notes are backed by the borrower’s pledged assets. If the borrower defaults on the loan, and fails to cure the default, the lender may legally take possession of the pledged collateral. The guide below is intended to provide an overview of the drafting process, as well as detail the information that’s required in a promissory note.

How to Write

Step 1 – Download the template using the links at the top of the page.

Step 2 – The opening paragraph must contain the following details:

  • Date of agreement
  • Legal name of borrower
  • Address of borrower
  • Name of lender
  • Address of borrower
  • AND
  • Submit the principal sum
  • Enter the interest rate (per annum)

Step 3 – Payments – The payments subsection is where the payment method and other related information must be entered:

  • Select the payment method (“No Installments” OR “Installments” OR “Interest Only”).

Note: Enter the installment amount if you select “Installments.”

Step 4 – Select the monthly OR weekly due date information if the chosen method is “Installments” or “Interest Only.”

Step 5 – Due Date:

  • Provide the date which the entire balance of the loan is due by (this include any additional fees, interest, etc.).

Step 6 – Interest Due in Event of Default:

  • Submit the interest rate that will be applied to the balance (should the borrower default on the loan).

Step 7 – Late Fees: If the borrower does not make a payment by the due date, they will have X amount of days to make the payment before the lender can charge a late fee.

  • Provide the late fee amount, and the number of days the borrower will have to make the past-due payment.

Step 8 – Acceleration:

  • If the borrower defaults on the note, they still have a certain amount of time to “cure” the default before the lender can demand the entire balance due.
  • Provide the number of days the borrower will have to cure the default.

Step 9 – Security: This subsection details the borrower’s pledged assets.

  • Submit a description of the collateral.

Step 10 – Signatures:

  • Submit the date.
  • The borrower and lender must provide their printed names/signatures.
  • AND
  • The witnesses must print/sign their names.
Illinois Secured Promissory Note - Adobe PDF - Microsoft Word

Illinois Secured Promissory NoteAdobe PDFMicrosoft Word