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A promissory note is a document outlining a borrower's agreement to repay a loan, featuring two types: secured and unsecured. A secured note is tied to an asset; if repayment fails, the lender can claim the asset. Conversely, an unsecured note lacks this security, making it more challenging for lenders to recover funds without legal action. Promissory notes offer benefits like certainty of payment, marketability, and judicial enforceability under the Uniform Commercial Code (UCC), which mandates that the borrower's payment obligation must be unconditional and due at a specific time, ensuring clarity and ease of transfer.