Updated April 11, 2022
A Pennsylvania unsecured promissory note is a promise from the borrower of a monetary balance to repay the lender in a structured and complete fashion. Because this note is unsecured, the lender is not covered if the borrower enters into default and cannot recover. To help prevent this situation, the lender should screen potential borrowers for strong credit. Lending exclusively to family and friends is an additional way of preventing defaults.