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In this video tutorial, the speaker discusses creating a promissory note, which is used when one party borrows money from another and wants to ensure repayment. The first step involves verifying the identification of all parties involved, particularly the lender and borrower, to ensure their names match those on the document. While the addresses do not have to match, the address on the promissory note should reflect the borrower's current residence. If there is a co-signer involved, their identification should also be verified. This process helps to formalize the agreement and increase the likelihood of repayment.