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A promissory note is a document detailing money borrowed and its repayment structure. There are two types: secured and unsecured. A secured note involves an asset being turned over to the lender if not repaid, while an unsecured note requires legal action if payment is not made. Benefits of a promissory note include payment certainty, marketability, and judicial certainty under the Uniform Commercial Code. The borrower must have an unconditional obligation to pay at a definite time for the note to be negotiable.
