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A promissory note is a document outlining borrowed money and its repayment structure, categorized into two types: secured and unsecured. A secured promissory note links the loan to an asset or property, which the lender can claim if repayment fails. In contrast, an unsecured note does not allow for asset security, leading lenders to pursue legal action in case of default. Promissory notes offer benefits such as payment certainty, marketability, and judicial assurance under the Uniform Commercial Code (UCC), which dictates requirements for negotiability. For a note to be valid, the borrower's obligation must be unconditional and due by a specific time, minimizing ambiguity regarding payment amounts and enhancing transferability.