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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 between a borrower and a lender, specifying the amount owed and any applicable interest payments. Seth explains that promissory notes can have various structures, including balloon payments—where the borrower makes interest-only payments for a set period before paying off the full balance—or straight-line amortization, which entails fixed payments throughout the loan's duration without a balloon payment at the end.