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In this video, Seth provides a quick overview of promissory notes, which are lending instruments detailing the terms between a borrower and a lender. A promissory note specifies the amount owed and any applicable interest payments. It can be structured in various ways, such as with balloon payments, where initial payments are interest-only and the full balance is paid off later, or through straight line amortization, which involves fixed payments throughout the loan duration without a balloon payment at the end.