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In this video, Seth provides a quick overview of promissory notes, which are lending instruments used for centuries. A promissory note is a document that outlines the terms and conditions between a borrower and a lender, detailing the amount owed and any applicable interest payments. Seth explains that promissory notes can be structured in various ways, including balloon payments—where the borrower makes interest-only payments for a time before repaying the full balance—and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment.