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In this video, Seth provides a quick overview of promissory notes, which are lending instruments that detail the terms between a borrower and a lender. A promissory note outlines the amount owed and any interest payments involved. There are various structures for promissory notes, including options for balloon payments—where only interest is paid for a period before the full balance is due—and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end.