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A promissory note is a document outlining the terms of money borrowed from a lender and its repayment structure, classified into two types: secured and unsecured. A secured promissory note involves collateral, meaning the lender can seize an asset if repayment doesn't occur. In contrast, an unsecured note lacks this collateral, requiring the lender to pursue legal action if the borrower defaults. Promissory notes provide benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). For negotiability, the borrower's obligation must be unconditional and due at a specified time, minimizing ambiguity regarding the owed amount and enhancing transferability.