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An Unsecured Promissory Note is commonly used in Singapore when one party needs to formalize a promise to repay a debt without providing collateral. This document type is particularly relevant for business loans, personal lending, or commercial transactions where trust between parties is established. The note must comply with Singapore's legal framework, including the Civil Law Act and Money Lenders Act. As an unsecured instrument, it typically includes specific payment terms, interest rates (if applicable), and consequences of default, while providing the lender with a clear basis for legal recourse if needed.
