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In this video, Seth provides a brief overview of promissory notes, explaining that they are lending instruments used for centuries. A promissory note is a simple document outlining the terms between a borrower and a lender, specifying the amount owed and any applicable interest payments. He mentions different ways to structure promissory notes, including options for balloon payments, where the borrower makes interest-only payments 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.