A Colorado unsecured promissory note is used by two parties entering into a loan arrangement where the borrower is not required to offer collateral to secure the loan. The document includes essential loan terms, such as the amount, interest rate, and repayment method, whether in installments or as a lump sum.
Since this document lacks security, the lender cannot claim any of the borrower’s assets to recover the funds in the event of default. As such, lenders should exercise caution and only use this agreement with trustworthy borrowers.
