A Hawaii unsecured promissory note outlines an individual’s legal obligation to repay a loan without the safeguard of collateral. Without security, lenders cannot seize property or assets if the borrower fails to make payments, making this type of loan typically reserved for low-risk borrowers or those with personal relationships with the lender, such as family or close friends.
Lenders should be fully aware of the limited means of recovering funds in an unsecured transaction if the borrower defaults on payment.
