Updated March 12, 2022
An Arizona unsecured promissory note is an agreement between two parties that establish various aspects of their personal information in addition to the basics of how the loan will be paid back. The word “unsecured” refers to the fact that the lender has no security in the agreement. If the borrower cannot pay the agreed-upon amount and defaults, the lender has no established method of obtaining his or her money back. Because of this, the borrower will typically be family, a close friend, or an individual with a high credit rating.