An Alabama unsecured promissory note is a contract for lending money without the borrower providing collateral. This simplified debt instrument documents crucial loan terms without extensive complexities, making it suitable for low-risk borrowers or those with a personal relationship with the lender, such as family or friends.
However, because there is no collateral backing, it’s imperative for the lender to trust the borrower’s repayment capability, as there’s no immediate recourse for recovering the lent funds in case of default.
