A Tennessee unsecured promissory note is a legal document that outlines a loan agreement where the lender provides a loan to the borrower without the safeguard of collateral from the borrower’s assets. Instead, the lender ensures the borrower has established financial reliability before granting this loan. They may also award a loan to someone they know personally with a trustworthy track record.
Lenders should exercise caution when creating these arrangements because they come with a greater risk of non-payment than secured loans. Even though this note doesn’t detail any collateral as a form of security, it documents other essential details, including the repayment schedule, interest rate, and principal loan amount.
