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A promissory note is a document outlining borrowed money from a lender and its repayment terms, classified into two types: secured and unsecured. A secured note includes a condition where the borrower must forfeit an asset to the lender if repayment fails. Conversely, an unsecured note does not allow the lender to claim an asset, leading to potential legal action for non-payment. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). The UCC mandates that the borrower's payment obligation is unconditional and due at a specified time, reducing ambiguity regarding the amount owed and facilitating easier transfer of the note.