An Arkansas unsecured promissory note is a legal document facilitating loan transfers without the need for collateral. This agreement outlines key transaction terms, including loan amount, repayment schedules, and penalties. However, the absence of collateral means lenders face higher risk, with potential recourse limited to legal action, mainly through small claims court for balances under $10,000.
While defaulting under this agreement does not risk the borrower’s assets, they may still incur increased interest rates, late fees, and immediate repayment demands.
