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In this video, Seth provides a brief overview of promissory notes, a long-used lending instrument. A promissory note is a document that outlines the terms between a borrower and lender, specifying the amount owed and any applicable interest payments. These notes can be structured in various ways, including options for balloon payments—which involve interest-only payments for a set period followed by a full balance payment—or straight-line amortization, which features fixed payments throughout the loan's duration without a balloon payment at the end.