Utah Secured Promissory Note Overview
A secured promissory note in Utah is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Utah 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 Utah is 10% (default).
10% default rate; no general usury cap for written agreements between competent parties; consumer lending subject to regulatory oversight. Lenders should verify that the agreed-upon interest rate complies with Utah'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 Utah, non-judicial (trust deed) 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.
10% (default)
Usury rate cap
Department of Commerce
UCC filing office
Non-judicial
Foreclosure type
Yes
Deficiency judgment
Utah Legal Requirements
Utah has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under UT law:
Important: Utah Usury Laws
Utah's maximum interest rate is 10% (default). 10% default rate; no general usury cap for written agreements between competent parties; consumer lending subject to regulatory oversight. Exceeding the legal limit may void the interest portion of your note or result in civil penalties.
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 Utah's 10% (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 Department of Commerce, Division of Corporations, UCC Section for personal property collateral
- Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights
UCC Filing in Utah
To perfect a security interest in personal property in Utah, the lender must file a UCC-1 financing statement with the Department of Commerce, Division of Corporations, UCC Section. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.
Prepare the UCC-1 Form
Include the debtor's exact legal name, secured party name, and detailed collateral description
File with the Department of Commerce
Submit online or by mail with the required filing fee
Monitor and Renew
UCC-1 filings last 5 years; file a continuation statement before expiration
Terminate After Payoff
File a UCC-3 termination statement when the loan is fully repaid
Utah Foreclosure & Repossession
Utah uses non-judicial (trust deed) 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 Utah: Yes, within 3 months. The lender must follow Utah's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.
| Aspect | Utah Rule |
|---|---|
| Foreclosure Type | Non-judicial (trust deed) and judicial |
| Deficiency Judgment | Yes, within 3 months |
| Statute of Limitations | 4 years (oral), 6 years (written contracts) |
| Usury Rate | 10% (default) |
| UCC Filing Office | Department of Commerce, Division of Corporations, UCC Section |
Sample Utah Secured Promissory Note
Below is a preview of our Utah-specific secured promissory note. Your customized document will include all terms compliant with UT law.
STATE OF UTAH
SECURED PROMISSORY NOTE
Collateral-Backed Loan Agreement
LENDER (Secured Party):
Name: [Lender Name]
Address: [Utah Address]
BORROWER (Debtor):
Name: [Borrower Name]
Address: [Utah Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 10% (default) in UT)
Collateral: [Description]
Utah Secured Promissory Note FAQ
Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Utah.
Official Utah Resources
Use these official resources to verify Utah requirements, file UCC documents, and access state legal information.
Other Utah Promissory Note Types
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