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In this video, Seth provides a quick overview of promissory notes, explaining that they are lending instruments used to outline the terms between a borrower and a lender. A promissory note details the amount owed and any applicable interest payments. It can be structured in various ways, including balloon payments, where the borrower makes interest-only payments for a period before settling the entire balance, or straight-line amortization, which involves fixed payments throughout the loan's lifespan without a final balloon payment.