Updated April 11, 2022
An Oregon unsecured promissory note binds the lender and the borrower of a monetary balance into an agreement that requires the borrower to repay the lender under the outlined terms and conditions. The agreement differs from the secured version in that there is no listed security, which means the lender may not be able to recover the unpaid balance if the borrower defaults on the loan. If this situation occurs, the lender may bring the borrower to a small claims court and attempt to recover the value of the note.