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A promissory note is a document outlining borrowed money and its repayment terms. There are two types: secured and unsecured promissory notes. A secured note includes an asset or property as collateral, allowing the lender to claim it if the borrower defaults. An unsecured note does not have collateral, meaning the lender must pursue legal action to recover funds if the borrower fails to make payments. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). The borrower's obligation must be unconditional and due at a specific time, ensuring clarity regarding the owed amount and ease of transfer.