Loan Agreement Contract Template

Use Template

Loan Agreement

 

This Loan Agreement (“Agreement”) is made and entered into on the date of ______________________________, at ________________ (city) by and between:

 

______________________________ with a mailing address of ____________________________________________________________ (“Lender”: this expression shall unless excluded by or repugnant to the subject or context be deemed to be include its legal heirs, administrators and permitted assigns)

AND

______________________________ with a mailing address of ____________________________________________________________ (“Borrower”: this expression shall unless excluded by or repugnant to the subject or context be deemed to be include its legal heirs, administrators and permitted assigns)

For the purpose of securing the payment of a loan of $____________  (the “Loan”) from the Lender, the Borrower hereby pledges, assigns and transfers to the Lender, and the Lender hereby accepts, the following collateral (the “Collateral”): ____________________________________________________________ In consideration of the mutual promises and agreements contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

 

  1. Loan. The Lender hereby loans the Borrower the principal amount of $____________, which the Borrower hereby acknowledges receiving. The Borrower promises to pay the Lender, on demand, the principal amount of the Loan, together with interest thereon at the rate of ____________% per annum from the date of this Agreement until paid in full. Interest shall accrue and be payable on the unpaid principal balance from time to time outstanding, whether or not the same is declared due and payable. Payments shall be made to the Lender in accordance with the Plan via Cash. The Borrower will make payments using this method unless prior written approval from the Lender allows otherwise.

 

  1. Owing Party Representation and Warranty. The Borrower hereby represents and warrants that this Agreement and the payment plan herein have been developed in a manner that the Borrower reasonably believes they can pay the Lender without further interruption notwithstanding an additional change in circumstances.
  2. Prepayment. The Borrower may prepay the Loan in whole or in part at any time without penalty. If the entire amount is paid off by _____________, the Borrower will receive a discount as follows: _____________.

 

  1. Late Payments. If any payment is not received by the Lender when due, the entire unpaid balance of the Loan and all accrued interest thereon shall immediately become due and payable without demand or notice of any kind, all of which is expressly waived by the Borrower. In the event of any default, the Lender may declare the entire unpaid balance of the Loan immediately due and payable and pursue any and all remedies provided by law or in equity. The Borrower agrees to pay, on demand, all reasonable costs and expenses incurred by the Lender in enforcing this Agreement, including reasonable attorneys’ fees and expenses.

 

  1. Waiver. The Lender hereby waives presentment for payment, notice of non-payment and demand for payment. The Borrower hereby waives diligence, presentment, demand, notice of dishonor, protest and notice of protest. The Lender hereby waives all rights of set-off and counterclaim against the Borrower.

 

  1. Security Interest. To secure the payment of the Loan and all other obligations of the Borrower to the Lender, the Borrower hereby grants to the Lender a security interest in the following collateral: ____________ (“Collateral”), and the Lender hereby accepts such security interest. Borrower hereby agrees to list Lender as a lender on the title of the Security, regardless of Lender’s choice to perfect the security interest.

If Borrower defaults on this Loan Agreement and does not make payment for ____________ days after it is demanded by Lender, the Collateral will revert to Lender and all rights in the ownership of such Collateral will belong to Lender.

  1. Remedies. Upon the occurrence and during the continuance of any event of default by the Borrower, the Lender may exercise any one or more of the following remedies, singly or in combination, at its option and without prejudice to any other remedy provided by law or in equity:

 

(a) Declare the entire unpaid balance of the Loan, together with all accrued interest, immediately due and payable;

 

(b) Enter into possession of the Collateral or any part thereof and for that purpose the Lender is hereby authorized to enter upon any premises where the same may be located, and the Lender or any person authorized by it may remove the Collateral or any part thereof, without being liable for trespass or any damages therefore;

 

(c) Sell, lease or otherwise dispose of the Collateral or any part thereof in any manner and at any time, either public or private, either at one time or in parcels and either upon credit or for cash, at the Lender’s option, without demand or advertisement and without notice to the Borrower; and

 

(d) Require the Borrower to pay to the Lender, on demand, all reasonable costs and expenses incurred by the Lender in enforcing this Agreement, including reasonable attorneys’ fees and expenses.

 

  1. Waiver of Jury Trial. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY LITIGATION BASED ON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN.

 

  1. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of __________________________ and subject to the exclusive jurisdiction of the federal and state courts located in _______________.

 

  1. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be illegal, invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

 

  1. Default. The following events constitute default of this Loan Agreement and upon their occurrence, the entirety of any remaining amount due shall become immediately payable:
  2. a) Borrower's failure to pay the Principal Sum or any accrued interest when such payments are due;
  3. b) Borrower's insolvency;
  4. c) Borrower's death, incompetency, liquidation, or dissolution;
  5. d) Borrower's making of a general assignment for the benefit of Borrower's creditors;
  6. e) Borrower's filing of any bankruptcy proceedings;
  7. f) Any application for the appointment of a receiver for Borrower, or
  8. g) Borrower's misrepresentation to Lender for the purposes of obtaining this Loan Agreement.

 

 

  1. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall be considered one and the same agreement.

 

  1. Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, whether written or oral, between the Parties.

 

  1. Amendment. This Agreement may not be altered, amended or modified except by an agreement in writing signed by the Parties.

 

  1. Headings. The headings of the sections of this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

  1. Gender and Number. Whenever used herein, the  gender shall include all genders, the singular number shall include the plural, and vice versa, as the context may require.

 

  1. Independent Parties. Nothing contained herein shall be deemed or construed by the Parties or any third party to create a partnership, agency or joint venture between them, and the Parties do not hereby intend to form a partnership, agency or joint venture.

 

  1. Force Majeure. The Lender shall not be liable for any loss or damage which may be suffered by the Borrower or any other party, directly or indirectly, by reason of any delay or failure in the performance of any obligation of the Lender hereunder where such delay or failure shall be due to any cause beyond the reasonable control of the Lender, including but not limited to acts of God, war, civil disturbance,fire, explosion, strikes, lockouts or other labor disputes, floods, lightning or other acts of nature, riot or civil commotion, or any law, order, regulation, directive or restriction of any government or governmental body or authority.

 

  1. Notices. Any and all notices required or permitted to be given by either Party to the other under this Agreement shall be in writing and shall be deemed to have been given when delivered personally, or deposited in the United States mail, first class, certified or registered, postage prepaid, and addressed to the respective Parties at their respective addresses set forth above or to such other address as either Party may designate by notice given in accordance with the provisions of this paragraph.

 

  1. No Waiver. No waiver by either Party of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or shall constitute, a waiver of any other term, provision or condition hereof, whether or not similar, nor shall such waiver constitute a continuing waiver of any such term, provision or condition hereof. No waiver shall be binding unless executed in writing by the Party making the waiver.

 

  1. Assignment. This Agreement is personal to the Borrower and neither this Agreement nor any rights, interests or obligations herein may be assigned or transferred by the Borrower.

 

  1. Release and Indemnification. In consideration for agreeing to this Loan Agreement, the Borrower hereby releases any claims against the Lender related to the Loan as of the date of this Agreement. However, nothing in this Agreement is meant to release the Borrower from its obligation to pay the Loan according to the Plan herein or limit the rights of the Lender in collecting said Loan.

 

 

  1. Collection Costs. Should the Borrower default on completing any obligation contained within this Loan Agreement, including, but not limited to, if any of the circumstances in the Default provision occur, the Lender may declare the entire amount remaining due immediately. Any and all costs or expenses incurred by the Lender in enforcing the obligations of this Loan Agreement as a result of Buyer's default, including any legal fees or costs, will be added to the remaining amount due and must be paid immediately by the Borrower.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

 

Lender: ______________________________

 

Signature ______________________________

 

 

Borrower: ______________________________

 

Signature ______________________________