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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 promissory note involves collateral, meaning if the borrower fails to repay, the lender can claim the asset. Conversely, an unsecured note does not involve collateral; if repayment is missed, the lender must resort to legal action. Promissory notes offer benefits like guaranteed payment, ease of transfer, and judicial certainty under the Uniform Commercial Code (UCC), which dictates the requirements for negotiability. The borrower's payment obligation must be unconditional and specified for a definite time, reducing uncertainty regarding the amount owed.