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A promissory note is a document outlining borrowed funds and repayment terms, categorized as secured or unsecured. A secured note is backed by an asset, which can be claimed by the lender if repayment fails. In contrast, an unsecured note does not tie the loan to an asset, requiring the lender to pursue legal action for repayment if default occurs. Promissory notes offer advantages such as certainty of payment, marketability, and judicial certainty as per the Uniform Commercial Code (UCC). Key UCC requirements include that the borrower's obligation must be unconditional and due at a definite time, reducing ambiguity in the amount owed.