A West Virginia unsecured promissory note is a personal loan contract that doesn’t allow the lender to secure collateral from the borrower. The contract is similar to an IOU in that it is generally used for small loans between individuals who know and trust each other. Unlike an IOU, however, a promissory note allows the lender to specify the terms of repayment, including interest, the timing of payments, and late fees. The agreement differs from the “secured” promissory note in that it doesn’t allow the lender to obtain any collateral on the loan. Due to the higher risk factor for the lender, the contract will usually be accompanied by a higher interest rate.
Secured Promissory Note – Records a loan that is secured by collateral.