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In this video, Seth provides a quick overview of promissory notes, which are lending instruments outlining the terms between a borrower and a lender. He explains that a promissory note documents the specified amount the borrower owes, including interest payments. Seth highlights different structures for promissory notes, such as balloon payments, where the borrower pays interest only for a time before paying the entire balance, and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end.