Final answer:
The document that creates a lien and acts as security for the promissory note is a security agreement
Step-by-step explanation:
The document that creates a lien and acts as security for the promissory note is called a security agreement. This document is a legally binding contract between a lender and a borrower and outlines the rights and obligations of both parties.
The security agreement typically includes specific details about the collateral that is being used to secure the loan, as well as provisions for repayment in the event of default. For example, if a borrower obtains a loan to purchase a car, the car itself would be listed as collateral in the security agreement. If the borrower fails to make payments, the lender can repossess the car as a means of recovering the outstanding debt.