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A promissory note is a document outlining borrowed money and its repayment structure, existing in two types: secured and unsecured. A secured note allows the lender to claim an asset if the borrower fails to repay. In contrast, an unsecured note does not tie the loan to an asset, meaning the lender must pursue legal action for non-payment. Promissory notes provide benefits such as payment certainty, marketability, and judicial enforceability under the Uniform Commercial Code (UCC). For a note to be negotiable, the borrower's obligation must be unconditional and have a definite repayment timeline, reducing ambiguity regarding the owed amount and enhancing ease of transfer.