Georgia Secured Promissory Note Overview
A secured promissory note in Georgia is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Georgia 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 Georgia is 7% (default).
7% default rate; 5% per month (60% per annum) maximum by written contract; special rules for loans over $3,000. Lenders should verify that the agreed-upon interest rate complies with Georgia'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 Georgia, non-judicial (power of sale) 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.
7% (default)
Usury rate cap
Superior Court Clerk's Cooperative Authority
UCC filing office
Non-judicial
Foreclosure type
Yes
Deficiency judgment
Georgia Legal Requirements
Georgia has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under GA law:
Important: Georgia Usury Laws
Georgia's maximum interest rate is 7% (default). 7% default rate; 5% per month (60% per annum) maximum by written contract; special rules for loans over $3,000. 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 Georgia's 7% (default) 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 Superior Court Clerk's Cooperative Authority for personal property collateral
- Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights
UCC Filing in Georgia
To perfect a security interest in personal property in Georgia, the lender must file a UCC-1 financing statement with the Superior Court Clerk's Cooperative Authority. 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 Superior Court Clerk's Cooperative Authority
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
Georgia Foreclosure & Repossession
Georgia uses non-judicial (power of sale) 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 Georgia: Yes, with court confirmation of fair market value. The lender must follow Georgia's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.
| Aspect | Georgia Rule |
|---|---|
| Foreclosure Type | Non-judicial (power of sale) |
| Deficiency Judgment | Yes, with court confirmation of fair market value |
| Statute of Limitations | 4 years (oral), 6 years (written contracts) |
| Usury Rate | 7% (default) |
| UCC Filing Office | Superior Court Clerk's Cooperative Authority |
Sample Georgia Secured Promissory Note
Below is a preview of our Georgia-specific secured promissory note. Your customized document will include all terms compliant with GA law.
STATE OF GEORGIA
SECURED PROMISSORY NOTE
Collateral-Backed Loan Agreement
LENDER (Secured Party):
Name: [Lender Name]
Address: [Georgia Address]
BORROWER (Debtor):
Name: [Borrower Name]
Address: [Georgia Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 7% (default) in GA)
Collateral: [Description]
Georgia Secured Promissory Note FAQ
Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Georgia.
Official Georgia Resources
Use these official resources to verify Georgia requirements, file UCC documents, and access state legal information.
Other Georgia Promissory Note Types
Need a different type of promissory note for Georgia? We offer state-specific templates for every type.
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