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In this video, Seth provides a brief overview of promissory notes, which are lending instruments used for centuries. A promissory note is a document that outlines the terms and conditions between a borrower and a lender, specifying the amount owed and any interest payments involved. Seth explains that promissory notes can be structured in various ways, such as with balloon payments—where interest-only payments are made for a time before the total balance is due—or with straight-line amortization, which involves fixed payments over the loan's duration without a balloon payment at the end.