A Massachusetts unsecured promissory note is a legal document used to record the conditions of an unsecured loan. The form contains all the necessary terms and conditions for a simple loan transaction, including interest rate, installment schedule, late fees, and the due date. As it is an unsecured loan, the borrower needn’t put up collateral to receive financing, and the lender ought to only select individuals they are confident will repay the debt on time. However, any default by the borrowing party is a violation of a binding agreement and may result in the lender enforcing legal action against them.
Secured Promissory Note – Allows a lender to secure their loan with a security interest in the borrower’s property.