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A promissory note is a document outlining borrowed money and its repayment terms. There are two types: secured and unsecured. A secured note allows the lender to claim an asset or property if the borrower defaults, while an unsecured note does not, requiring the lender to pursue legal action for recovery. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). The borrower's obligation to pay must be unconditional and due at a specified time, minimizing uncertainty about the owed amount and enhancing ease of transfer.