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A promissory note is a document outlining borrowed money and its repayment structure, categorized into secured and unsecured types. A secured note is backed by an asset or property, ensuring the lender can claim it if repayment fails. Conversely, an unsecured note lacks such backing, requiring the lender to pursue legal action for payment recovery. Promissory notes offer benefits like guaranteed payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC), which defines negotiability requirements. For a promissory note to be valid, the borrower must have an unconditional obligation to pay by a specific deadline, minimizing uncertainty regarding the owed amount and facilitating transfer ease.