A North Dakota unsecured promissory note is a formal agreement where a borrower commits to repaying a lender based on predetermined conditions without offering collateral. This type of document increases the lender’s risk, as there is no tangible security if the borrower defaults.
It specifies the loan’s details, such as the repayment amount, frequency, interest rate, and actions in case of non-payment. To mitigate risk, lenders are advised to lend to individuals with high credit scores or those they personally trust, like family or friends.
