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A promissory note is a document outlining borrowed money and its repayment terms, classified as either secured or unsecured. A secured promissory note requires collateral, meaning if the borrower fails to repay, the lender can claim the pledged asset. In contrast, an unsecured note lacks collateral, necessitating legal action for repayment. Promissory notes offer various advantages, including guaranteed payment, 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 specific time, reducing the uncertainty about the amount owed and facilitating the transfer of the note.