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Illinois promissory notes are legal documents outlining a borrower's commitment to repay a lender, adhering to state-specific laws regarding interest rates and signing. A promissory note serves as a straightforward agreement for borrowing money, providing more detail than an IOU but less than a comprehensive loan contract. There are two types of promissory notes: secured and unsecured. A secured promissory note is backed by valuable assets like vehicles or homes, offering certain protections to lenders. Each type of note has its own advantages and disadvantages for both borrowers and lenders, depending on the specific circumstances of the transaction.
