4/17/2024 0 Comments Formal loan arrangementThe occurrence of any of the following shall constitute an “Event of Acceleration” by the Lender under this Note:Ī) Borrower’s failure to pay any part of the principal or interest as and when due under this Note orī) Borrower’s becoming insolvent or not paying its debts as they become due.ħ. The rights and remedies of the Lender shall be cumulative and may be pursued singly, successively, or together, at the sole discretion of the Lender.Ħ. No delay or omission on part of the holder of this Note in exercising any right hereunder shall operate as a waiver of any such right or of any other right of such holder, nor shall any delay, omission, or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. The Borrower has the right to pay back the loan in full or make additional payments at any time without penalty.ĥ. The rate must be equal to or less than the usury rate in the State of the Borrower.Ĥ. ☐ – Bear interest at a rate of Percent compounded annually. Īll payments made by the Borrower are to be applied first to any accrued interest and secondly to the principal balance. ☐ – Monthly payment of beginning on and to be paid on the of every month until the balance is paid, ending on. ☐ – Weekly payment of beginning on and to continue every seven (7) days until the balance is paid, ending on. This agreement (the “Note”) shall be due and payable, including the principal and any accrued interest, in one (1) of the following ways (check one): For the above value received by with a mailing address of (the “Borrower”), agrees to pay (Lender Name) with a mailing address of (the “Lender”).Ģ. Download (Sample Data): PDF, Word (.docx).Download (Blank): PDF, Word (.docx), OpenDocument.The contract can be used for principal-only loans (no interest) and many other types of lending. It establishes when (and for how long) the borrower needs to make payments on the loan. Simple (1 page) Loan Agreement – A one (1) page loan agreement that remains fully binding upon the parties but is significantly less dense and complex.ĭefinition: A written contract that provides verifiable proof that money was loaned from one entity to another.Ī loan agreement is a document used to structure the terms and conditions of borrowed money. They are legally binding, but they generally fall somewhere in between an IOU and a loan contract in terms of enforceability. Promissory Note – A debt instrument that establishes a written promise from a borrower to a lender. Personal Loan Agreement – A general agreement used for lending money for a wide range of needs, such as a wedding, home renovation, or a vacation. Payment Plan Agreement – Used for structuring the payment timeline a borrower will be required to follow when repaying a loan. Interest still accrues during the interim. Loan Extension Agreement – Prolongs the maturity date of the borrower’s loan used when a borrower falls behind on payments. I Owe You (IOU) Agreement – An informal agreement that recognizes money was lent from one person/entity to another. By Type (10)Īuto Loan Agreement – For loaning money to a person or business for the purchase of a motor vehicle.ĭownload: PDF, Word (.docx), OpenDocumentīusiness Loan Agreement – Used to establish the terms and conditions of an arrangement where money was lent to a business for operational or investment purposes.Įmployee Loan Agreement – Used when a company lends money to one of its employees.įamily Loan Agreement – A lending contract formed between two (2) or more family members. The primary purpose of the contract is to protect the lender should the borrower not uphold their commitments. The contract defines who the borrower and lender are, the amount of money lent, the interest rate, and how long the borrower has to pay it back. A loan agreement is a formal written contract used whenever money is borrowed.
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