Florida Secured Promissory Note Overview
A secured promissory note in Florida is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Florida law governs the creation, perfection, and enforcement of security interests under the Uniform Commercial Code (UCC) as adopted by the state. The maximum interest rate for most loans in Florida is 18% (under $500K).
18% per annum for loans under $500,000; 25% for loans of $500,000 or more; criminal usury at 25%/45%. Lenders should verify that the agreed-upon interest rate complies with Florida's usury laws before finalizing the note. Charging interest above the legal limit can result in severe penalties, including forfeiture of interest and potential civil liability.
For secured notes involving real property in Florida, judicial foreclosure applies. Understanding your state's foreclosure process is critical because it determines the timeline, costs, and lender's rights in the event of borrower default.
18% (under $500K)
Usury rate cap
Department of State
UCC filing office
Judicial
Foreclosure type
Yes
Deficiency judgment
Florida Legal Requirements
Florida has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under FL law:
Important: Florida Usury Laws
Florida's maximum interest rate is 18% (under $500K). 18% per annum for loans under $500,000; 25% for loans of $500,000 or more; criminal usury at 25%/45%. Exceeding the legal limit may void the interest portion of your note or result in civil penalties.
Essential Elements
- Written Agreement: The note must be in writing, signed by the borrower, and clearly state the loan terms
- Compliant Interest Rate: Must not exceed Florida's 18% (under $500K) usury cap
- Collateral Description: Specific, identifiable description of all pledged property
- Security Agreement: Grant of security interest signed by the borrower (debtor)
- UCC-1 Filing: Filed with the Department of State, Division of Corporations, UCC Section for personal property collateral
- Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights
UCC Filing in Florida
To perfect a security interest in personal property in Florida, the lender must file a UCC-1 financing statement with the Department of State, Division of Corporations, UCC Section. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.
Prepare the UCC-1 Form
Include the debtor's exact legal name, secured party name, and detailed collateral description
File with the Department of State
Submit online or by mail with the required filing fee
Monitor and Renew
UCC-1 filings last 5 years; file a continuation statement before expiration
Terminate After Payoff
File a UCC-3 termination statement when the loan is fully repaid
Florida Foreclosure & Repossession
Florida uses judicial foreclosure for real property collateral. For personal property (vehicles, equipment, inventory), the lender generally has the right to repossess the collateral without court action, provided it can be done without breaching the peace.
Regarding deficiency judgments in Florida: Yes, within one year of foreclosure sale. The lender must follow Florida's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.
| Aspect | Florida Rule |
|---|---|
| Foreclosure Type | Judicial |
| Deficiency Judgment | Yes, within one year of foreclosure sale |
| Statute of Limitations | 4 years (oral), 5 years (written contracts) |
| Usury Rate | 18% (under $500K) |
| UCC Filing Office | Department of State, Division of Corporations, UCC Section |
Sample Florida Secured Promissory Note
Below is a preview of our Florida-specific secured promissory note. Your customized document will include all terms compliant with FL law.
STATE OF FLORIDA
SECURED PROMISSORY NOTE
Collateral-Backed Loan Agreement
LENDER (Secured Party):
Name: [Lender Name]
Address: [Florida Address]
BORROWER (Debtor):
Name: [Borrower Name]
Address: [Florida Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 18% (under $500K) in FL)
Collateral: [Description]
Florida Secured Promissory Note FAQ
Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Florida.
Official Florida Resources
Use these official resources to verify Florida requirements, file UCC documents, and access state legal information.
Other Florida Promissory Note Types
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