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A promissory note is a document outlining borrowed money and its repayment structure, with two types: secured and unsecured. A secured note allows the lender to claim an asset if the borrower defaults, while an unsecured note does not, forcing the lender to pursue legal action for repayment. Promissory notes offer benefits such as certainty of payment and marketability, governed by the Uniform Commercial Code (UCC), which establishes negotiability requirements. The borrower's obligation to pay must be unconditional and set for a specific time, reducing uncertainty about the owed amount and ensuring straightforward transferability.