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A promissory note is a document outlining borrowed money and its repayment structure, categorized into secured and unsecured notes. A secured note allows the lender to claim an asset if the borrower fails to repay, while an unsecured note provides no collateral, meaning the lender must resort to legal action for non-payment. Promissory notes offer benefits such as payment certainty and marketability. They are governed by the Uniform Commercial Code (UCC), which dictates requirements for negotiability. A borrower's obligation to repay must be unconditional and due at a specified time, ensuring clarity regarding the amount owed and facilitating easy transferability.