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A promissory note is a document outlining borrowed money and its repayment terms, categorized into two types: secured and unsecured. A secured note allows the lender to claim an asset or property if the borrower fails to repay, while an unsecured note does not secure any asset, requiring the lender to pursue legal action for repayment. Promissory notes offer benefits such as guaranteed payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC), which mandates that the borrower's payment obligation must be unconditional and due at a specific time, reducing uncertainty regarding the amount owed and facilitating easier transferability.