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In this video, Seth provides a brief overview of promissory notes, which are lending instruments used for centuries. A promissory note is a simple document outlining the terms and conditions between a borrower and a lender, specifying the amount owed and any applicable interest payments. There are various structures for promissory notes, including options with balloon payments, where the borrower makes interest-only payments for a time before paying off the full balance, and straight-line amortization, which involves fixed payments throughout the loan's duration without a final balloon payment.