Updated on March 2nd, 2022
A Missouri unsecured promissory note binds a borrower to a loan’s repayment terms without requiring them to put forward any collateral. Unlike a secured promissory note, a lender is not entitled to claim any of the borrower’s property if they fail to make payment on time. However, the agreement does provide other methods of ensuring that repayment is met.
Once a borrower enters into the agreement, they accept all additional charges, including interest and late fees, and they agree to deliver payment to the lender by the time and schedule posted in the note. It should be noted that if the borrower defaults on payment, the lender may not accelerate the maturity date of the amount owed until twenty (20) days have passed since notice to cure has been delivered both to the borrower and to any co-signers (§ 408.555(1)).
Secured Promissory Note – This document outlines the terms of a loan secured by the borrower’s assets.
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