Document background
A Promissory Note With Collateral is commonly used in England and Wales when parties need to document a debt obligation with additional security. The document serves dual purposes: it evidences the debt and creates a security interest in specific assets. This type of agreement is particularly useful in business lending, asset financing, and structured debt arrangements where the lender requires more protection than a simple promise to pay. The document must comply with both the Bills of Exchange Act 1882 and the Law of Property Act 1925, among other relevant legislation.
