Updated April 11, 2022
A Delaware unsecured promissory note is very similar to the secured version, except in the amount of security given to the lender in the transaction. Incorporated into the document are sections that require both parties to agree on the full balance, the interest rate, and various fees resulting from penalties. The lender should be aware that in the case of a default, he or she has no immediate way to recover the loaned money. However, the lender can bring the borrower to small claims court and/or file the default on the borrower’s credit.