Texas Secured promissory note

Before you prepare the document

Identify each borrower and holder, the original debt and funding dates, funds actually received, payment records, interest and other charges. Confirm any collateral and any existing obligation it continues to secure. Omit personal account numbers from the document.

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Interest, security and location

Texas interest and prepayment. Ordinary interest is generally capped at 10% unless another law authorizes it. A written contract can use a dated weekly ceiling. For example, the published household and commercial weekly ceilings were both 18% on May 15, 2026. The statutory limits and publication period matter. Check the agreement or renewal date and distinguish a fixed household loan from a variable commercial loan. A Texas loan on property that is or will be the borrower’s residential homestead can collect a prepayment charge above 12% interest only if a federal agency requires that charge. A contract silent on interest and an express zero-interest agreement are different. Texas Credit Letter and rate archive · Texas Finance Code §302.102

Texas real-property security. A promissory note alone does not create a land lien. Identify the separate property instrument, the owners and any required spouse consent. For a homestead, trace original purchase money to the price. A later cash-out advance is a different category, with lender eligibility, lien-to-value, enforcement and other requirements. Only a lawful real-property process can transfer possession of land. Texas Constitution, Article XVI, Section 50 · Property Code §51.002

Texas motor vehicle liens. Check the jurisdiction covering the vehicle by title, the owner and how the vehicle is used. A Texas choice-of-law clause does not establish that there is a Texas title. For a Texas-titled private vehicle, use the title record to perfect the lien. A selling dealer’s own grant in qualifying inventory uses Article 9. Compare the actual secured obligation and balance tender before releasing a title. Texas title application · Texas lien release form · Texas Transportation Code

When the parties, collateral, loan negotiation or repayment involve different states, record each location and determine the applicable requirements before signing. Verify the filed instrument and applicable filing law separately from any law chosen for the note.

Borrower protections

Pre-service debt can qualify for the Servicemembers Civil Relief Act interest reduction. A covered mortgage can qualify for an additional year. The Military Lending Act separately considers credit extended to covered servicemembers and dependents. Verify applicable federal disclosures before consummation. 50 U.S.C. §3937 · CFPB Military Lending Act guidance