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In this video, Seth provides a brief overview of promissory notes, which are traditional lending instruments outlining the terms between a borrower and a lender. A promissory note specifies the amount owed and any applicable interest payments. He explains that these notes can be structured in various ways, including balloon payments—where initial payments are interest-only for a period before a lump sum is due— and straight-line amortization, which involves fixed payments throughout the loan's duration with no balloon payment at the end.