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Edit Facility Agreement

Aug 6th, 2022

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How to Edit Facility Agreement

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A promissory note is a document that outlines borrowed money and its repayment structure, categorized into two types: secured and unsecured. A secured note allows the lender to claim an asset or property if the borrower fails to repay. In contrast, an unsecured note does not involve collateral, meaning the lender must resort to legal action, such as filing in small claims court, to recover funds if payment is not made. Promissory notes offer benefits like payment certainty, marketability, and legal assurance under the Uniform Commercial Code (UCC). For negotiability, the borrower's obligation must be unconditional and due at a specific time, reducing the risk regarding the owed amount and facilitating easier transfers.

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