A Wyoming unsecured promissory note is a formal agreement where a lender loans money to a borrower without the buffer of collateral if they default. This arrangement inherently carries a higher risk for the lender since they can’t claim any assets if the borrower doesn’t pay them back.
Because of this setup, lenders typically choose borrowers with whom they have trust and a preexisting relationship. For example, these notes are common between lenders and their close friends or family members. If a borrower defaults, a lender has limited recourse options, including negotiation/discussion, a lawsuit, and the implementation of an acceleration clause.
