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A promissory note is a document outlining borrowed money and its repayment terms, categorized as either secured or unsecured. A secured note allows the lender to claim an asset if repayment isn’t made, while an unsecured note lacks this guarantee, requiring the lender to pursue legal action for recovery. Promissory notes offer benefits like payment certainty, marketability, and judicial backing under the Uniform Commercial Code (UCC). For the note to be negotiable, the borrower's obligation must be unconditional and due at a specified time, reducing ambiguity regarding the owed amount and facilitating easier transferability.