Free Minnesota Secured Promissory Note Forms

Minnesota Secured Promissory Note Overview

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

8% default rate; no general usury cap for written agreements; consumer loans subject to specific rate schedules; 8% on judgments. Lenders should verify that the agreed-upon interest rate complies with Minnesota'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 Minnesota, non-judicial (by advertisement, 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.

Minnesota Legal Requirements

Minnesota has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under MN 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 Minnesota'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 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 Minnesota

To perfect a security interest in personal property in Minnesota, 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.

Minnesota Foreclosure & Repossession

Minnesota uses non-judicial (by advertisement, 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 Minnesota: Limited; generally not available after non-judicial foreclosure. The lender must follow Minnesota's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.

Sample Minnesota Secured Promissory Note

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

Minnesota Secured Promissory Note FAQ

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

Official Minnesota Resources

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

Other Minnesota Promissory Note Types

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