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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 promissory note involves collateral, allowing the lender to claim an asset if the borrower fails to repay. In contrast, an unsecured note does not offer such protection, requiring the lender to pursue legal action for repayment. Promissory notes provide benefits like certainty of payment, marketability, and judicial certainty, adhering to the Uniform Commercial Code (UCC). For a note to be negotiable, the borrower’s obligation must be unconditional and due at a specific time, minimizing uncertainty regarding the owed amount and ensuring ease of transfer.