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LSDefine

Simple English definitions for legal terms

unsecured note

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A quick definition of unsecured note:

An unsecured note is a written promise to pay back money that is not backed by any collateral. This means that if the person who borrowed the money cannot pay it back, the lender cannot take any property or assets as payment. Unsecured notes can be risky for lenders because they have no guarantee of getting their money back.

A more thorough explanation:

An unsecured note is a type of promissory note that is not backed by any collateral. It is a written promise by one party (the maker) to pay money to another party (the payee) or to bearer. This means that if the maker fails to pay back the loan, the payee has no legal claim to any specific asset or property to recover the debt.

For example, if John borrows $10,000 from Jane and signs an unsecured note, he is not required to put up any collateral such as a car or a house. If John fails to repay the loan, Jane cannot seize any of his assets to recover the debt. Instead, she may have to take legal action to collect the debt.

Unsecured notes are riskier for lenders because they have no guarantee of recovering their money if the borrower defaults. As a result, unsecured notes usually have higher interest rates than secured notes, which are backed by collateral.

Other types of promissory notes include:

unsecured creditor | unskilled work

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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