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In this video, Seth provides a brief overview of promissory notes, which are lending instruments used for centuries. He explains that a promissory note is a document outlining the terms between a borrower and a lender, specifying the amount owed and any interest payments involved. Various setups for promissory notes include balloon payments, where interest-only payments are made initially before the full balance is due, and straight-line amortization, characterized by fixed payments throughout the loan's duration without a balloon payment. This summary encapsulates the key concepts of promissory notes and their structures.