Free North Dakota Secured Promissory Note Forms

North Dakota Secured Promissory Note Overview

A secured promissory note in North Dakota is a loan agreement where the borrower pledges specific collateral to guarantee repayment. North Dakota 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 North Dakota is 6% (default).

6% default rate; maximum 5.5% above current Federal Reserve cost of funds rate; no cap for certain business loans. Lenders should verify that the agreed-upon interest rate complies with North Dakota'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 North Dakota, judicial (most common) and non-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.

North Dakota Legal Requirements

North Dakota has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under ND 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 North Dakota's 6% (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, Central Indexing System for personal property collateral
• Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights

UCC Filing in North Dakota

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

North Dakota Foreclosure & Repossession

North Dakota uses judicial (most common) and non-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 North Dakota: Yes, within 90 days. The lender must follow North Dakota's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.

Sample North Dakota Secured Promissory Note

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

North Dakota Secured Promissory Note FAQ

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

Official North Dakota Resources

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

Other North Dakota Promissory Note Types

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