Updated March 12, 2022
An Arkansas unsecured promissory note is an agreement that establishes two (2) parties into an unbinding contract that lays out the foundations for how the loan will be paid back. The only prevalent negative about the note is that there is no established security for the lender. In other words, if the borrower defaults on his or her payments, the lender’s only chance for obtaining the loaned amount back is to take the borrower to small claims court (if the total balance amount is less than $10,000).