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A promissory note is a document outlining borrowed money and its repayment structure, categorized into two types: secured and unsecured. A secured note is backed by an asset; if not repaid, the lender can claim the asset. In contrast, an unsecured note lacks collateral, requiring the lender to pursue legal action for repayment. Promissory notes offer benefits like certainty of payment and marketability, adhering to the Uniform Commercial Code (UCC) that establishes negotiability requirements. The borrower's obligation must be unconditional and due at a specified time, enhancing the reliability of the debt amount and facilitating easier transfer and negotiation.