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A promissory note is a document that outlines money borrowed from a lender and the repayment terms. There are two types: secured and unsecured. A secured note allows the lender to claim an asset or property if the borrower fails to repay. In contrast, an unsecured note lacks this provision, meaning the lender must pursue legal action if payments are not made. Promissory notes offer several benefits, including certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC), which governs negotiability. The borrower's obligation must be unconditional and due at a specified time, reducing ambiguity about the owed amount and enhancing the note's transferability.