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In this video, Seth provides a quick overview of promissory notes, a lending instrument utilized for centuries. A promissory note is a document outlining the terms between a borrower and a lender, detailing the amount owed and any applicable interest payments. Various structures exist for promissory notes, including balloon payments, where borrowers make interest-only payments for a period before repaying the full balance, and straight-line amortization, which involves fixed payments over the loan's duration without a final balloon payment. Seth highlights that promissory notes can be customized based on the needs of both parties.