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A promissory note is a document outlining borrowed money and its repayment structure, classified into two types: secured and unsecured. A secured note requires collateral, allowing the lender to claim an asset if the borrower defaults. In contrast, an unsecured note does not offer such security, leaving the lender to pursue legal action for repayment. Promissory notes provide benefits like certainty of payment and marketability, governed by the Uniform Commercial Code (UCC). For a note to be negotiable, the borrower's obligation must be unconditional and due at a specific time, reducing uncertainty about the amount owed and facilitating easier transferability.