Investopedia explains 'Secured Note'
If you have a mortgage or an automobile loan, you are the holder of a secured note. In the case of a mortgage, you hold a secured note with your home pledged as collateral. If you fail to make your mortgage payments, the lender can seize your home. In the case of an auto loan, the lender can repossess your vehicle if you stop making your loan payments.
In business, a secured note might be issued by corporation that provides private debt and equity financing to a company looking to expand its business. If the business expansion is unsuccessful, the lender will take the assets that the company pledged to secure the loan, which might include real estate and equipment.
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