An Idaho unsecured promissory note establishes a financial commitment between two parties, wherein one pledges to repay a loan without providing collateral. This type of document does not involve assets as security for the loan, making the collection of unpaid funds more challenging for the lender.
In the absence of collateral, lenders have various options for seeking restitution, including proposing debt settlement agreements, negotiating loan restructures, hiring debt collection agencies, or resorting to legal action through court proceedings. Therefore, lenders should have a personal relationship with the borrower and trust them completely.
