A Minnesota unsecured promissory note is a contract where an individual agrees to loan money to another party without any requirement for them to provide collateral. The form will contain the negotiated terms and conditions, including the loan’s rate of interest, maturity date, and whether the repayment will be in installments or in a lump sum. By opting to use this type of promissory note, the lender can inform the borrower of their obligations and educate them on the consequences of defaulting on payments. While the lender cannot claim the borrower’s assets, they may still impose late charges, accelerate the contract’s due date, and bring the borrower to court if all else fails.
Secured Promissory Note – The details of a loan secured by the borrower’s assets are outlined in this document.