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Highlight Note Agreement

Highlight Note Agreement

Aug 6th, 2022

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How to Highlight Note Agreement

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A promissory note is a document that outlines borrowed money and its repayment structure, classified into two types: secured and unsecured. A secured note involves an agreement allowing the lender to claim an asset if the loan isn't repaid. In contrast, an unsecured note does not involve securing an asset, meaning the lender may need to pursue legal action for repayment. Promissory notes offer benefits such as payment certainty, marketability, and judicial enforceability under the Uniform Commercial Code (UCC), which specifies that the borrower's repayment obligation must be unconditional and due at a definite time, enhancing the likelihood of repayment.

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