California Secured promissory note
Identify the specific collateral, its location, existing liens and the separate security, title or mortgage instrument. A note alone does not record a lien.
Before you prepare the document
Identify each borrower and holder, the original debt and funding dates, funds actually received, payment records, interest and other charges. Confirm any collateral and any existing obligation it continues to secure. Omit personal account numbers from the document.
Interest, security and location
California. Article XV sets a 10% ordinary ceiling for qualifying personal, family or household borrowing and distinguishes it from other uses, including buying, constructing or improving real property. The latter calculation compares 10% to five points above the qualifying district rate on the statutory date. Identify the primary use, the earlier contract or funding date, fees and any specific lender authority. A California mortgage discharge and a trustee’s reconveyance have different filing steps. California Civil Code §2941
When the parties, collateral, loan negotiation or repayment involve different states, record each location and determine the applicable requirements before signing. Verify the filed instrument and applicable filing law separately from any law chosen for the note.
Borrower protections
Pre-service debt can qualify for the Servicemembers Civil Relief Act interest reduction. A covered mortgage can qualify for an additional year. The Military Lending Act separately considers credit extended to covered servicemembers and dependents. Verify applicable federal disclosures before consummation. 50 U.S.C. §3937 · CFPB Military Lending Act guidance
Choose a repayment structure
Questions about funding and payment
Can I prepare a note before funding?
Choose the planning worksheet while a transfer is pending. Reconcile the actual net principal with the dated payment record before acknowledging receipt.
What happens after a partial payment?
Record how the holder applied the payment and what balance remains. Identify any agreed release of specific collateral. Check the applicable filing or title procedure separately.