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A promissory note is a document outlining borrowed money and its repayment structure, categorized into two types: secured and unsecured. A secured note allows the lender to claim an asset if repayment fails, while an unsecured note does not grant this security, requiring the lender to pursue legal action for recovery. Promissory notes offer advantages like certainty of payment and judicial enforceability under the Uniform Commercial Code (UCC). The note must specify an unconditional obligation to pay at a specific time, ensuring clarity on the amount owed and facilitating easier transfer and negotiation.