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Vermont Secured Promissory Note Template |
The Vermont Secured Promissory Note Template is a .PDF/Word document that can be used to quickly create a secured promissory note. Once completed, the form will outline the required terms of a loan (such as the interest rate, principal sum, payment schedule, etc.). It should be noted that one of the main requirements of a “secured” note is the pledging of collateral from the borrower. Once the form has been completely filled out, it must be signed by the borrower/lender (and witnesses) in order to be permissible in court.
How to Write
Step 1 – Download the document.
Step 2 – In the first paragraph of the form submit the following:
- Date of note
- Borrower’s name/address
- Lender’s name/address
- Amount of loan
- Interest rate
Step 3 – Payments – Select the payment method the borrower has agreed to use:
- No Installments
- Installments
- Interest Only
Step 4 – If the payment method is “Installments” or “Interest Only” – the monthly or weekly due date information is required to be provided.
Note: Submit the “Installment” amount if required.
Step 5 – Due Date:
- Fill in the date in which the principal sum (in addition to any fees/interest charges) is due by.
Step 6 – Interest Due in Event of Default:
- In the event of a default, the borrower will be charged an additional interest rate. Submit the amount that the borrower will be charged.
Step 7 – Late Fees:
- Provide how long the borrower will have (after not making a scheduled payment) to pay the due amount before the lender will charge a late fee.
- Enter the amount that will constitute the late fee.
Step 8 – Acceleration:
- Submit the period of time that the borrower will be provided, post-default, to “cure” the default.
Step 9 – Security:
Provide a description of the borrower’s pledged asset(s).
Step 10 – Signatures:
- Enter the date, and then fill in the printed names of each party.
- Borrower is required to provide a signature.
- Lender must sign the form.
- Each witness must sign their name.
Vermont Secured Promissory Note – Adobe PDF – Microsoft Word
