A Delaware unsecured promissory note is a formal arrangement between two parties that doesn’t mandate the borrower to offer collateral to secure the loan. This document outlines the amount, interest rate, and related fees, all requiring mutual consent from the parties.
The lack of collateral highlights the importance of the borrower’s reliability in timely repayment. In the event of default, the lender lacks immediate recourse for recovering the loaned funds but may pursue legal avenues such as small claims court or reporting the default to credit agencies.
