Document background
The Unsecured Loan Note is a fundamental financial instrument used in the Netherlands for documenting lending arrangements where no collateral is provided as security. This document is typically employed when there is sufficient trust between the parties or when the borrower's creditworthiness alone is deemed adequate security for the loan. It complies with Dutch legal requirements, particularly the Civil Code (Burgerlijk Wetboek) and financial regulations, and is commonly used in both business and personal lending contexts. The document captures essential terms including loan amount, interest rates, repayment schedule, events of default, and remedies available to the lender. It's particularly useful for businesses seeking working capital, expansion funding, or bridge financing, as well as for personal loans where the administrative burden of securing collateral is unnecessary or undesirable.
