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In this video, Seth provides a quick overview of promissory notes, which are traditional lending instruments laying out the terms between a borrower and a lender. A promissory note details the amount owed and any interest payments. They can be structured in various ways, including options for balloon payments—where the borrower makes interest-only payments for a period before paying off the full balance—and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end.