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A promissory note is a document outlining money borrowed from a lender, detailing the repayment terms. There are two types: secured and unsecured. A secured promissory note requires that if the borrower fails to repay, the lender can seize the specified asset or property as collateral. In contrast, an unsecured note does not involve collateral, meaning the lender must resort to legal actions, such as filing in small claims court, if the borrower defaults. Promissory notes offer benefits like certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC), which specifies negotiability requirements. The borrower's obligation to repay must be unconditional and due at a definite time, enhancing the note's marketability and transferability.