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In this video, Seth provides a brief overview of promissory notes, which are lending instruments summarizing the terms between borrowers and lenders. A promissory note contains the specific amount owed, along with details about interest payments. Seth explains that these notes can be structured in various ways, such as with balloon payments—which involve interest-only payments for a certain period followed by a lump-sum payoff—or through straight-line amortization, which entails fixed payments throughout the loan's duration without a final balloon payment.