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A promissory note is a document that outlines the terms of money borrowed from a lender, detailing the repayment structure. There are two types: secured and unsecured notes. A secured note is backed by an asset or property, meaning if the borrower defaults, the lender can claim the asset. In contrast, an unsecured note does not have this security, requiring the lender to pursue legal actions in case of non-payment. Promissory notes offer benefits such as 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 specified time, ensuring clarity on the amount owed.