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In this video, Seth provides a quick overview of promissory notes, which are lending instruments that outline the terms between a borrower and a lender. A promissory note serves as a document detailing the amount owed, and often includes information on interest payments. These notes can be structured in various ways, including balloon payments, where the borrower makes interest-only payments for a while before paying off the full balance, or straight-line amortization, which involves fixed payments throughout the loan's duration without a final balloon payment.