This Loan Agreement (the “Agreement”) is entered into as of [Effective Date] by and between [Lender Name] (“Lender”) and [Borrower Name] (“Borrower”).
1. Loan Amount
Lender agrees to loan [Loan Amount] to Borrower on the Effective Date.
2. Interest and Payments
Interest accrues at [Interest Rate]% per year. Repayment terms, payment dates, and amortization (if any) are set out in Exhibit A.
3. Use of Proceeds
Borrower will use the loan proceeds solely for [Purpose], unless otherwise agreed in writing.
4. Collateral (Optional)
Borrower grants Lender a security interest in [Collateral Description] to secure repayment. Borrower will execute any documents needed to perfect the security interest.
5. Prepayment
Borrower may prepay all or part of the loan without penalty unless stated otherwise in Exhibit A.
6. Covenants
Borrower will maintain accurate records, remain in good standing, and promptly notify Lender of any material adverse changes.
7. Events of Default
Events of default include failure to pay, insolvency, or material breach. Upon default, Lender may accelerate the outstanding balance.
8. Remedies
Lender may pursue remedies available at law or in equity, including collection costs and reasonable attorneys’ fees as permitted by law.
9. Governing Law
This Agreement is governed by the laws of [Governing Law Jurisdiction].
10. Severability
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions will continue in full force and effect. The Parties will negotiate in good faith to replace any invalid provision with a valid provision that achieves the original intent.
11. Entire Agreement
This Agreement constitutes the entire understanding between the Parties and supersedes all prior negotiations, understandings, and agreements. No representations or statements not contained in this Agreement will be binding.
12. Amendment
This Agreement may only be amended or modified by a written document signed by both Parties.
13. Waiver
No waiver of any provision of this Agreement will be deemed or will constitute a waiver of any other provision, nor will any waiver constitute a continuing waiver unless otherwise expressly stated.
14. Assignment
Neither Party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other Party.
Lender:
Name: [Name]
Title: [Title]
Date: [Date]
Borrower:
Name: [Name]
Title: [Title]
Date: [Date]
Disclaimer
This template is provided for informational purposes only and does not constitute legal advice. Contraxly is not a law firm and does not provide legal services. You should consult a qualified attorney to obtain advice tailored to your situation. Use of this template is at your own risk, and no liability is accepted for its use.
