Free South Carolina Secured Promissory Note Forms

South Carolina Secured Promissory Note Overview

A secured promissory note in South Carolina is a loan agreement where the borrower pledges specific collateral to guarantee repayment. South Carolina 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 South Carolina is 8.75% (default).

8.75% default rate on judgments; parties may contract to any rate by written agreement; no general usury cap for most transactions. Lenders should verify that the agreed-upon interest rate complies with South Carolina'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 South Carolina, 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.

South Carolina Legal Requirements

South Carolina has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under SC 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 South Carolina's 8.75% (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 South Carolina

To perfect a security interest in personal property in South Carolina, 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.

South Carolina Foreclosure & Repossession

South Carolina uses 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 South Carolina: Yes, with court approval of fair market value. The lender must follow South Carolina's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.

Sample South Carolina Secured Promissory Note

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

South Carolina Secured Promissory Note FAQ

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

Official South Carolina Resources

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

Other South Carolina Promissory Note Types

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