A Nebraska unsecured promissory note is a contract whereby a lender loans a borrower money without the added security of collateral to ensure repayment. The loan amount, interest charges, payback date, and late fees will be recorded onto the form, as will the general details of the parties and the transaction. While the lender is not provided collateral in an “unsecured” loan, they may still opt to guarantee the loan by requesting that a third-party co-signer be added to the agreement. The co-signer will assume the borrower’s obligations if they default, and deliver any incomplete or missed payment on the borrower’s behalf.
Once the terms have been negotiated and agreed upon, the involved parties will sign the document, and its contents will take effect immediately.
Secured Promissory Note – Used for loan transactions that require the borrower to pledge certain assets as collateral.