A North Carolina unsecured promissory note is a legally binding agreement that formalizes a loan’s terms without requiring collateral, highlighting the borrower’s promise to repay. It records the deal’s specifics and all parties’ signatures, presenting a higher risk for the lender in case of non-payment.
To minimize this risk, lenders should ideally engage with trusted individuals or those with robust credit profiles. This document serves as a formal acknowledgment of debt, bridging the gap between an informal IOU and more rigid bank loan agreements.
