Updated April 08, 2022
A Vermont unsecured promissory note binds a lender and a borrower into a legal promise that requires the borrower of a monetary balance to reimburse a lender in a predetermined time frame. This note does not include security, leaving the lender at risk of losing the loaned balance. Lenders should screen potential lenders to ensure they have a strong credit history (this hints that they will be able to make payments on time).