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In this video, Roger Schliter discusses the concept of a promissory note, a legal document where one party promises to pay a debt to another. He explains that it is a written agreement where the debtor agrees to pay a specified amount on a certain date or upon demand, functioning similarly to an IOU. Schliter notes that while the demand feature was common in the past, especially among smaller banks, it is less frequently used today. He also mentions that the Small Business Administration (SBA) restricts banks from including the demand feature in guaranteed loans. This emphasizes the evolution of promissory notes and their implications in lending practices.