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A promissory note is a document outlining borrowed money and repayment terms. There are two types: secured and unsecured notes. A secured note involves an agreement where an asset or property is pledged as collateral, allowing the lender to claim it if repayment fails. In contrast, an unsecured note does not include collateral; if payment is missed, the lender may need to pursue legal action to recover funds. Promissory notes offer benefits like payment certainty, marketability, and judicial certainty under the Uniform Commercial Code (UCC), which governs negotiability. The borrower's payment obligation must be unconditional and due at a specific time, ensuring clarity on the debt amount.