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In this video, Seth provides a brief overview of promissory notes, which are lending instruments that outline the terms between a borrower and a lender. He explains that a promissory note details the amount owed and any included interest payments. Seth discusses different structures for promissory notes, including options for balloon payments, where interest-only payments are made for a period before the full balance is due, and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end.