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A promissory note is a document outlining money borrowed from a lender, detailing the repayment structure. There are two types: secured and unsecured. A secured note requires collateral, allowing the lender to claim an asset if the borrower defaults. An unsecured note does not involve collateral, meaning the lender must pursue legal action for repayment if the borrower fails to pay. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). Key requirements include an unconditional obligation to pay and a definite repayment time, reducing uncertainty regarding the amount owed.