Updated March 12, 2022
An Alaska unsecured promissory note is an unbinding agreement between two parties on the basis of lending money. The agreement allows for the lending of a certain amount of money to a borrower with the expectation that the lender receives an increase in money by collecting the original loan amount with added interest. The major difference between a secured and unsecured promissory note is there is an increase in liability for the lender, as the lender does not receive security in the event the money is not reimbursed by the borrower.