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A promissory note is a document outlining borrowed money and its repayment structure. There are two types: secured and unsecured. A secured promissory note ties the loan to an asset; if the borrower defaults, the lender can claim the asset. In contrast, an unsecured note does not involve an asset, requiring the lender to pursue legal action if payments aren’t made. Promissory notes provide benefits like payment certainty, marketability, and judicial certainty under the Uniform Commercial Code (UCC). For a note to be negotiable, the borrower's obligation must be unconditional and due at a specified time, minimizing uncertainty about the amount owed and facilitating transferability.