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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 outlining the terms and conditions between a borrower and a lender, specifying the amount owed and any applicable interest payments. Seth explains that promissory notes can be structured in various ways, including balloon payments—where interest-only payments are made for a period before the entire balance is due—and straight-line amortization, which involves fixed payments throughout the loan term without a balloon payment at the end.