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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 promissory note allows the lender to claim an asset or property if the borrower defaults on payment. In contrast, an unsecured promissory note does not tie the loan to an asset, leaving the lender to pursue legal actions for repayment. Promissory notes offer benefits like certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). For a note to be negotiable, the borrower's obligation to pay must be unconditional and due at a definite time, reducing ambiguity about the owed amount and ensuring easier transferability.