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A promissory note is a document outlining borrowed money and repayment terms, categorized as secured or unsecured. A secured promissory note involves collateral, meaning if the borrower defaults, the lender can take the specified asset. In contrast, an unsecured note does not involve collateral, requiring the lender to pursue legal action for repayment if necessary. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC), which governs negotiability. For a note to be negotiable, the borrower’s repayment obligation must be unconditional and due at a definite time, minimizing ambiguity regarding the amount owed.