A Utah unsecured promissory note is a simple, legally enforceable agreement detailing a borrower’s commitment to repay a specified loan to the lender without the security of collateral. Lenders often prefer to create this type of note in informal lending scenarios, and they typically write it for individuals with whom they have existing personal or professional relationships.
Within this document, you’ll find the loan’s essential terms, such as the loan amount, interest rate, repayment schedule, and consequences for late payments. It’s essential to ensure all parties understand their obligations because of the lack of collateral backing the loan. If the borrower defaults, the lender must seek legal action or go through a debt collection agency.
