Definition: A written promise to repay a debt that is not backed by a security interest in specified collateral.
Example
A borrower signs a note for a personal loan without pledging property to secure it.
Keep the distinction clear
Unsecured does not mean unenforceable or optional. The creditor may have legal collection remedies, but does not begin with a consensual lien on identified collateral.
Related terms
Promissory Note · Creditor · Collateral
Keep studying
References: California DRE: glossary
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