Free Maryland Secured Promissory Note Forms

Maryland Secured Promissory Note Overview

A secured promissory note in Maryland is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Maryland 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 Maryland is 8% (default).

8% default legal rate; 6% for written contracts unless higher rate specified; 24% maximum for most consumer loans; no cap for business loans over $15,000. Lenders should verify that the agreed-upon interest rate complies with Maryland'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 Maryland, non-judicial (power of sale) 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.

Maryland Legal Requirements

Maryland has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under MD law:

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 Maryland's 8% (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 State Department of Assessments and Taxation, UCC Section for personal property collateral
• Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights

UCC Filing in Maryland

To perfect a security interest in personal property in Maryland, the lender must file a UCC-1 financing statement with the State Department of Assessments and Taxation, UCC Section. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.

Maryland Foreclosure & Repossession

Maryland uses non-judicial (power of sale) 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 Maryland: Yes, within 3 years. The lender must follow Maryland's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.

Sample Maryland Secured Promissory Note

Below is a preview of our Maryland-specific secured promissory note. Your customized document will include all terms compliant with MD law.

Maryland Secured Promissory Note FAQ

Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Maryland.

Official Maryland Resources

Use these official resources to verify Maryland requirements, file UCC documents, and access state legal information.

Other Maryland Promissory Note Types

Need a different type of promissory note for Maryland? We offer state-specific templates for every type.