Updated April 08, 2022
A Rhode Island unsecured promissory note is a promise from the borrower (of a monetary balance) stating that he or she will pay back the lender the original balance plus interest in a predetermined time frame. This note is unsecured, which means that there is no section for security to be stated. This adds a considerable amount of risk to the lender in the transaction. To help prevent financial loss to the lender, the lender should only lend to family/friends and should screen all potential borrowers to ensure they have a strong credit history.