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A promissory note is a document outlining borrowed money and its repayment structure, which can be either secured or unsecured. A secured note requires the borrower to put up an asset or property as collateral; if not repaid, the lender can claim the asset. In contrast, an unsecured note does not provide collateral, meaning the lender may need to pursue legal action for repayment. Promissory notes offer benefits such as certainty of payment, marketability, and judicial certainty under the Uniform Commercial Code (UCC). For the note to be negotiable, the borrower's obligation must be unconditional and due at a specific time, reducing uncertainty regarding the amount owed.