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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 lender. A promissory note specifies the amount owed, including any interest payments. There are different ways to structure these notes, such as with balloon payments, which entail interest-only payments for a period before full repayment, or straight-line amortization, which features fixed payments throughout the loan's duration without a balloon payment at the end. These notes have been utilized for centuries as a simple document to formalize lending agreements.