A North Carolina secured promissory note is a debt repayment agreement where a borrower pledges valuable assets as collateral to secure a loan from a lender. A brief description of the pledged collateral, the loan amount, interest rate, and payment deadlines should be included in the form. Lenders may also insist that a co-signer execute this document to prevent a default and help ensure repayment. If the borrower fails to repay the loan, the lender will be granted possession of the collateral.
Unsecured Promissory Note – A financial arrangement where a debtor agrees to repay a lender without providing collateral.