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Promissory Note (Secured)

Draft Secured Promissory Notes in Minutes, Not Hours

12 minutes with CaseMark

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Run it in CaseMark

Upload your documents and get a finished work product in minutes. New accounts get $5 free to run their first skill.

12 minutes with CaseMark

What you'll need

  • Term Sheet or Loan Agreement
  • Borrower Entity Information

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

Drafting secured promissory notes manually requires extensive research into state usury laws, UCC filing requirements, and proper collateral descriptions. Attorneys spend hours cross-referencing templates, ensuring compliance with governing law, and crafting comprehensive default and remedy provisions that protect lender interests.

Drafting comprehensive secured promissory notes requires meticulous attention to UCC compliance, collateral descriptions, default provisions, and state-specific lending laws. Manual drafting takes 4-5 hours per document, with significant risk of missing critical enforcement provisions or perfection requirements that could jeopardize lender protection.

CaseMark automates secured promissory note drafting with AI that ensures UCC Article 9 compliance, proper collateral descriptions, and comprehensive default remedies. Generate complete, court-ready notes in 12 minutes with built-in compliance checks for usury laws, perfection requirements, and commercially reasonable terms.

How it works

  1. 1. Upload your documents

  2. 2. AI analyzes and extracts key information

  3. 3. Review and customize the generated content

  4. 4. Export in your preferred format (DOCX, PDF)

What you get

  • Parties Involved

  • Date and Loan Amount

  • Interest Rate and Computation

  • Repayment Terms

  • Security and Collateral

  • Events of Default

  • Remedies Upon Default

  • Governing Law and Jurisdiction

  • Miscellaneous Provisions

  • Signatures and Witnesses

What it handles

  • Parties Involved

  • Date and Loan Amount

  • Interest Rate and Computation

  • Repayment Terms

  • Security and Collateral

  • Events of Default

  • Remedies Upon Default

  • Governing Law and Jurisdiction

  • Miscellaneous Provisions

  • Signatures and Witnesses

Required documents

  • Term Sheet or Loan Agreement

    Document outlining principal amount, interest rate, repayment terms, and collateral description

    PDF, DOCX, TXT

  • Borrower Entity Information

    Legal name, state of incorporation, EIN, principal address, and authorized signatories

    PDF, DOCX, TXT

Supporting documents

  • Prior Promissory Notes

    Previous notes between parties for consistency in drafting style and provisions

    PDF, DOCX

  • Corporate Resolutions

    Board resolutions or authorizations approving the loan transaction

    PDF, DOCX

  • Collateral Documentation

    Equipment lists, title documents, or asset schedules describing secured collateral

    PDF, DOCX, XLSX

  • Financial Statements

    Borrower financial information for covenant structuring and risk assessment

    PDF, XLSX

Why teams use it

Generate complete secured notes with proper collateral descriptions and UCC compliance in under 10 minutes

Automatically incorporate state-specific usury laws and choice-of-law provisions

Comprehensive default and remedy clauses drawn from current legal best practices

Ensure proper security interest attachment and perfection language

Reduce drafting time by 96% while maintaining accuracy and legal compliance

Questions

How does CaseMark ensure the collateral description is sufficient for UCC perfection?

CaseMark analyzes your collateral documentation and generates descriptions that meet UCC Article 9 requirements for creating and perfecting security interests. The system identifies the collateral type and applies the appropriate level of specificity, whether it's equipment with serial numbers, inventory descriptions, accounts receivable, or intellectual property. It also flags which jurisdictions require UCC-1 filings based on borrower location and collateral situs.

Can the system handle variable interest rates and complex payment structures?

Yes, CaseMark supports both fixed and variable interest rate structures, including index-based rates with floors and caps. The system drafts precise calculation mechanics specifying the index source, adjustment frequency, day-count conventions, and compounding methods. It can structure interest-only periods, amortizing payments, balloon payments, and custom payment schedules while ensuring mathematical accuracy and usury compliance.

What events of default are included in the generated promissory note?

CaseMark includes comprehensive default provisions covering payment defaults, covenant breaches, misrepresentations, insolvency events, cross-defaults, judgment defaults, and material adverse changes. The system distinguishes between monetary and non-monetary defaults with appropriate notice and cure periods. Each default provision is tailored to commercial lending standards while protecting the lender's enforcement rights under applicable state law and the UCC.

How does CaseMark verify compliance with state usury laws?

The system incorporates usury limits for all 50 states and automatically checks that your specified interest rate and default rate comply with applicable maximums. CaseMark includes savings clauses that automatically reduce any interest charge to the maximum lawful rate if necessary. It also identifies whether the transaction qualifies for commercial lending exemptions that may exempt it from usury restrictions in certain jurisdictions.

Can I customize the remedies and enforcement provisions?

Absolutely. While CaseMark generates comprehensive default remedies including acceleration rights, collateral enforcement under UCC Article 9, and collection cost provisions, you can customize remedy provisions to match your risk tolerance and transaction requirements. The system maintains legally required elements like commercially reasonable notice while allowing flexibility in areas like prepayment penalties, late charges, and remedy election procedures.

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