A Montana unsecured promissory note is a legal agreement binding a borrower to repay a loan as per specified terms, facilitating timely payments without requiring collateral. Although it serves to document the loan details—such as repayment schedule, interest, and maturity date—it doesn’t guarantee the lender’s financial security in case of default.
Since there’s no collateral, recovery through small claims court isn’t assured, even though the note is legally enforceable. Thus, it’s advisable for lenders to choose borrowers with solid credit histories and personal acquaintances to mitigate risks.
