An Arizona unsecured promissory note is an agreement between two parties detailing personal information alongside repayment terms for a loan without collateral. In this arrangement, the lender assumes risk as there is no specified security, making borrowers typically individuals with solid credit ratings, family members, or close friends.
Despite the absence of collateral, the borrower remains legally obligated to repay the loan and any accrued interest and fees by the agreed-upon deadline. In case of default, the lender retains options such as employing debt collection agencies or seeking legal recourse.
