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In this video, Seth provides a brief overview of promissory notes, a lending instrument used for centuries. He explains that a promissory note is a document outlining the terms between a borrower and lender, detailing the amount owed and interest payments. Seth discusses different structures for promissory notes, such as balloon payments—where the borrower makes interest-only payments for a time before paying the full balance—and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment.