A Texas unsecured promissory note acts as a formal acknowledgment of a debt that a borrower incurs to a lender without the security of collateral. This document meticulously details the loan’s specifics, including the loan amount, the parties’ identifying information, the origin date, interest rates, and the repayment plan.
Due to the absence of collateral, the lender inherits a higher risk. They can’t claim any assets if the borrower defaults on repayment, so it’s important that they know the borrower personally or ensure they have a solid history of fulfilling their financial obligations.
