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California Secured Promissory Note

Create California Secured Promissory Note — $7.99

Not a blank template — your details are filled in, formatted to California law, and ready to sign.

Build a legally valid Secured Promissory Note for California that contains all required terms under California promissory note law. Fill in your loan details and download your completed, ready-to-sign Secured Promissory Note as a professional PDF.

California law governs promissory notes with specific usury limits and enforcement rules that defends both lending party and debtor. The usury limit in California is 10% for personal loans by written contract. Lenders have 4 years to file suit to collect on a promissory note in California. California law requires 4 specific elements in a valid promissory note.

California Promissory Note Requirements

Max Interest Rate 10%
Rate Details 10% for personal loans by written contract
Usury Penalty Treble interest penalty; criminal misdemeanor possible
Statute of Limitations 4 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency California Superior Courts
Required Elements Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable

What to Include in a California Secured Promissory Note

Every Secured Promissory Note in California should include the following essential provisions: the full legal names and addresses of both the lender and obligor, the principal loan amount, the interest rate (which must not exceed 10% for personal loans by written contract under California law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause. Because this is a secured promissory note, you must also describe the collateral in detail, including how it will be valued and the lender's right to seize it upon default.

California requires the following elements in a valid promissory note: written agreement signed by borrower, detailed collateral description, interest rate disclosure, lien filing if applicable.

How to Complete a California Secured Promissory Note

To complete a Secured Promissory Note in California, start by gathering the necessary information: the full legal names and addresses of both parties, the loan amount, the agreed-upon interest rate (must be at or below 10% for personal loans by written contract in California), the repayment terms, and any collateral details if applicable.

Our platform walks you through each section with a guided form tailored to California requirements. Once you have filled in all details, you can preview the document, choose from five professional document styles, and download your completed Secured Promissory Note as a PDF.

Frequently Asked Questions

Is a promissory note legally binding in California?
Yes. A properly executed promissory note is a legally enforceable contract in California. To be binding, it must identify both parties, state the loan amount and repayment terms, and be signed by the borrower. While notarization is not required in California, it is recommended to add an extra layer of authenticity. Lenders have 4 years to pursue legal action to collect on a defaulted note.
What is the maximum interest rate for a promissory note in California?
California imposes a usury limit of 10% for personal loans by written contract. Charging interest above the legal limit is considered usury and can result in penalties — in California, the consequence is: treble interest penalty; criminal misdemeanor possible.
Do I need a notary for a promissory note in California?
Notarization is not required for a promissory note to be legally valid in California. However, notarizing the document is strongly recommended — it deters forgery claims, simplifies enforcement in court, and makes the note self-authenticating as evidence. Having 1 witness is also recommended.
What happens if the borrower defaults on a promissory note in California?
If the borrower defaults, the lender may demand immediate repayment of the full outstanding balance, charge any default interest rate specified in the note, and pursue legal action in California court. Because this is a secured note, the lender may also seize and sell the collateral to recover the outstanding amount. Lenders have 4 years from the date of default to file a lawsuit under California's statute of limitations for written contracts.
What must be included in a California Secured Promissory Note?
A valid Secured Promissory Note in California must include: Written agreement signed by borrower; Detailed collateral description; Interest rate disclosure; Lien filing if applicable. Our platform automatically includes all required elements for California in your generated document, formatted to meet state standards.

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