Updated March 15, 2022
A Colorado unsecured promissory note is a document typically utilized by two parties who are planning on engaging in the loaning process. The note gives three options for payback and is agreed upon by both parties before the signing of the agreement. The lender should be fully aware that this document does not include security – this means that if the borrower defaults on the balance, the lender will have no direct means of recovering his or her money. Because of this, the lender should only use this agreement if the borrower can be thoroughly trusted.