Updated April 11, 2022
A North Dakota unsecured promissory note is a signed legal document stating that one party (“borrower”) will repay another party (“lender”) under the terms and conditions outlined in the agreement. Because this document is “unsecured,” the borrower is not required to set aside a material possession in the case of a default. Because this adds a considerable amount of risk to the transaction for the lender, it is advised to screen potential borrowers to ensure they have a reputable credit score.