Free Massachusetts Secured Promissory Note Forms

Massachusetts Secured Promissory Note Overview

A secured promissory note in Massachusetts is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Massachusetts 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 Massachusetts is 20% (criminal usury).

6% default rate; 20% criminal usury cap; no specific civil usury limit for most written agreements; consumer lending subject to regulatory limits. Lenders should verify that the agreed-upon interest rate complies with Massachusetts'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 Massachusetts, non-judicial (power of sale, 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.

Massachusetts Legal Requirements

Massachusetts has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under MA 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 Massachusetts's 20% (criminal usury) 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 the Commonwealth, UCC Division for personal property collateral
• Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights

UCC Filing in Massachusetts

To perfect a security interest in personal property in Massachusetts, the lender must file a UCC-1 financing statement with the Secretary of the Commonwealth, UCC Division. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.

Massachusetts Foreclosure & Repossession

Massachusetts uses non-judicial (power of sale, 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 Massachusetts: Yes, within 2 years. The lender must follow Massachusetts's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.

Sample Massachusetts Secured Promissory Note

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

Massachusetts Secured Promissory Note FAQ

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

Official Massachusetts Resources

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

Other Massachusetts Promissory Note Types

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