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A promissory note is a document outlining borrowed money and its repayment structure, classified into two types: secured and unsecured. A secured note involves collateral, allowing the lender to claim an asset if the borrower defaults. In contrast, an unsecured note does not tie the loan to assets, meaning the lender may need legal action to recover funds if payments are missed. Promissory notes offer benefits such as predictable payments and judicial certainty under the Uniform Commercial Code (UCC), which governs negotiability. To be valid, a borrower’s obligation must be unconditional and due at a specific time, enhancing certainty regarding the owed amount and facilitating easier transferability.