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A promissory note is a document outlining borrowed money and repayment terms, categorized into two types: secured and unsecured. A secured note allows lenders to claim an asset or property if the borrower defaults on payments. In contrast, an unsecured note does not provide collateral, meaning lenders must pursue legal action in case of non-payment. Promissory notes offer several advantages, including payment certainty and marketability. They are governed by the Uniform Commercial Code (UCC), which requires the borrower's obligation to pay to be unconditional and due on a specific date, reducing uncertainty regarding the owed amount and facilitating easier transfer and negotiation.