Idaho Secured Promissory Note Overview
A secured promissory note in Idaho is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Idaho 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 Idaho is No cap (market rate).
No usury cap for most transactions; parties may agree to any rate; Idaho Dept. of Finance oversees consumer lending. Lenders should verify that the agreed-upon interest rate complies with Idaho'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 Idaho, non-judicial (deed of trust, most common) and 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.
No cap (market rate)
Usury rate cap
Secretary of State
UCC filing office
Non-judicial
Foreclosure type
Yes
Deficiency judgment
Idaho Legal Requirements
Idaho has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under ID law:
Important: Idaho Usury Laws
Idaho's maximum interest rate is No cap (market rate). No usury cap for most transactions; parties may agree to any rate; Idaho Dept. of Finance oversees consumer lending. 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 Idaho's No cap (market rate) 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 Secretary of State, UCC Division for personal property collateral
- Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights
UCC Filing in Idaho
To perfect a security interest in personal property in Idaho, the lender must file a UCC-1 financing statement with the Secretary of State, UCC Division. 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 Secretary 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
Idaho Foreclosure & Repossession
Idaho uses non-judicial (deed of trust, most common) and 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 Idaho: Yes, within 3 months of non-judicial sale. The lender must follow Idaho's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.
| Aspect | Idaho Rule |
|---|---|
| Foreclosure Type | Non-judicial (deed of trust, most common) and judicial |
| Deficiency Judgment | Yes, within 3 months of non-judicial sale |
| Statute of Limitations | 4 years (oral), 5 years (written contracts) |
| Usury Rate | No cap (market rate) |
| UCC Filing Office | Secretary of State, UCC Division |
Sample Idaho Secured Promissory Note
Below is a preview of our Idaho-specific secured promissory note. Your customized document will include all terms compliant with ID law.
STATE OF IDAHO
SECURED PROMISSORY NOTE
Collateral-Backed Loan Agreement
LENDER (Secured Party):
Name: [Lender Name]
Address: [Idaho Address]
BORROWER (Debtor):
Name: [Borrower Name]
Address: [Idaho Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max No cap (market rate) in ID)
Collateral: [Description]
Idaho Secured Promissory Note FAQ
Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Idaho.
Official Idaho Resources
Use these official resources to verify Idaho requirements, file UCC documents, and access state legal information.
Other Idaho Promissory Note Types
Need a different type of promissory note for Idaho? We offer state-specific templates for every type.
Create Your Idaho Secured Promissory Note
Answer a few questions and download your Idaho-compliant secured note in minutes.
No account required. Free to create and preview.