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A promissory note is a document outlining money borrowed from a lender and the repayment terms. There are two types: secured and unsecured. A secured note allows the lender to claim an asset if repayment fails, while an unsecured note does not offer such security, requiring legal action for non-payment. Promissory notes provide several benefits, including certainty of payment and marketability, governed by the Uniform Commercial Code (UCC), which requires the borrower's payment obligation to be unconditional and due at a specific time. This contributes to reduced ambiguity regarding the owed amount and facilitates easier transferability.