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A promissory note is a document outlining borrowed money and its repayment terms. There are two types: secured and unsecured notes. A secured note requires an asset or property as collateral; if the borrower defaults, the lender can claim the asset. An unsecured note does not involve collateral, meaning if the borrower fails to repay, the lender must pursue legal action to recover the debt. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty as defined by the Uniform Commercial Code (UCC). The borrower's obligation to repay must be unconditional and set for a definite time, ensuring clarity regarding the amount owed and facilitating transfers.