A New Mexico unsecured promissory note is a legal agreement where a lender provides a loan without collateral to a borrower, detailing repayment amount, interest rate, and actions for late or non-payment. It outlines the lender’s profit through interest on the principal amount but highlights the higher risk due to the lack of security.
To mitigate risk, it advises lenders to deal with familiar individuals and verify potential borrowers’ credit, emphasizing the importance of trust in unsecured lending transactions.
