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In this video, Seth provides a quick overview of promissory notes, which are lending instruments used for centuries. A promissory note is a simple document outlining the terms and conditions between a borrower and a lender, specifying the amount owed and any applicable interest payments. The notes can be structured in various ways, such as with balloon payments, where the borrower pays interest-only for a set period before a lump sum payment at the end, or through straight line amortization, which involves fixed payments throughout the loan's duration without a balloon payment.