Secured Promissory Note

Draft Secured Promissory Notes in Minutes, Not Hours

12 minutes with CaseMark

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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

Deal Term Sheet
Party Information
Collateral Description

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

Workflow

Overview

CaseMark's Secured Promissory Note skill automates the drafting of enforceable, collateral-backed commercial loan notes with comprehensive lender protections. It handles complex interest structures, UCC Article 9 security interests, default provisions, and state-specific usury compliance in a single streamlined workflow. The result is a production-ready document that would traditionally take hours of manual drafting and research.

Drafting secured promissory notes for commercial loans is a time-intensive process that requires careful attention to interest calculations, collateral descriptions, UCC compliance, and state usury limits. Attorneys must manually cross-reference deal terms, research jurisdiction-specific requirements, and ensure every provision is internally consistent—a process that often takes several hours per note and is prone to costly errors.

CaseMark transforms this process by intelligently assembling a complete secured promissory note from your deal terms, party information, and collateral details. The AI drafts enforceable provisions covering interest, payment, default, remedies, and UCC Article 9 security interests while flagging potential usury issues and unresolved deal points—delivering in minutes what traditionally takes hours of manual work.

How it works

1. Upload your deal term sheet, party information, and collateral details
2. AI analyzes deal terms and drafts a complete secured promissory note with lender-protective provisions
3. Review the draft, resolve flagged items, and customize optional clauses
4. Export the finalized note in your preferred format (DOCX, PDF)

What you get

Secured Promissory Note with All Deal Terms
Collateral Grant & UCC Article 9 Security Interest
Default & Remedies Provisions
Payment Schedule & Interest Calculations
Representations, Warranties & Covenants
Review Checklist & Unresolved Items Summary

What it handles

Lender-protective default and remedy provisions with cross-default thresholds
UCC Article 9 compliant collateral descriptions and filing jurisdiction guidance
Automatic state usury rate compliance checks and default interest validation
Flexible interest structures including fixed, variable, floor/cap, and day-count conventions
Comprehensive prepayment, late fee, and acceleration clause drafting
Integrated review checklist to flag unresolved deal terms before finalization

Required documents

Deal Term Sheet
Summary of loan terms including principal, interest rate, payment schedule, maturity date, fees, and prepayment provisions
.pdf, .docx, .xlsx
Party Information
Legal names, entity types, states of formation, addresses, and authorized signatories for borrower and lender
.pdf, .docx
Collateral Description
Detailed description of collateral with UCC Article 9 categories, itemized assets, and filing jurisdiction information
.pdf, .docx

Supporting documents

Security Agreement
Existing or draft security agreement to ensure consistency with the promissory note's collateral provisions
.pdf, .docx
Guaranty Agreement
Personal or corporate guaranty to be cross-referenced in the note's default and remedy provisions
.pdf, .docx
Organizational Documents
Borrower's articles of organization, operating agreement, or board resolutions authorizing the loan
.pdf, .docx
Subordination or Intercreditor Agreement
Existing agreements governing priority of liens or payment waterfalls among multiple creditors
.pdf, .docx

Why teams use it

Reduce drafting time from hours to minutes while maintaining the precision and enforceability standards required for commercial lending transactions

Eliminate common drafting errors with built-in usury compliance checks, UCC Article 9 collateral description validation, and automated cross-referencing of deal terms

Ensure consistent lender-protective language across your entire loan portfolio with standardized default, remedy, and acceleration provisions

Streamline deal closings by generating complete notes with all ancillary provisions, reducing back-and-forth between counsel and business teams

Questions

Does the AI handle both fixed and variable interest rate structures?

Yes. CaseMark supports fixed rates, variable rates tied to indices like SOFR or Prime, and hybrid structures with floors and caps. It also drafts the appropriate day-count convention language (actual/360, actual/365, or 30/360) based on your deal terms.

How does CaseMark ensure state usury law compliance?

CaseMark flags interest rates and default rates that may exceed statutory limits in the governing law jurisdiction you select. It also includes standard savings clauses to protect enforceability in the event a rate is later deemed usurious.

Can the note include cross-default and cross-collateralization provisions?

Absolutely. CaseMark drafts optional cross-default thresholds tied to other indebtedness, judgments, or material adverse changes. Cross-collateralization language can be included when the borrower has multiple obligations with the same lender.

Does the output include UCC filing guidance?

Yes. CaseMark generates a UCC Article 9 compliant collateral description and identifies the appropriate filing jurisdictions based on debtor location and whether fixture or real property filings are required.

Can I customize the note for specific deal structures like balloon payments or amortization?

CaseMark supports a wide range of payment structures including fully amortizing, interest-only with balloon, and custom schedules. Simply specify your preferred structure in the deal term sheet and the AI will draft the corresponding payment provisions.

Is the generated note ready for execution?

CaseMark produces a comprehensive, professionally drafted note designed as a strong starting point. We recommend attorney review of all generated documents before execution to confirm compliance with your specific jurisdiction and deal requirements.