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A promissory note is a document outlining borrowed money and its repayment terms, with two types: secured and unsecured. A secured note ensures repayment through an asset or property that the lender can claim if the borrower defaults. In contrast, an unsecured note lacks collateral, meaning the lender would need to pursue legal action if payments are missed. Promissory notes offer several benefits, such as certainty of payment, marketability, and legal assurance under the Uniform Commercial Code (UCC). The borrower's obligation to pay must be unconditional and due at a specified time, reducing ambiguity about the owed amount and facilitating easier transferability.