Free Family Loan Agreement Template
Family Loan Agreement
BETWEEN:
Nicholas E. Peters ("Lender")
AND: Maribel F. Hammond ("Borrower")
This Family Loan Agreement ("Agreement") is entered into on this day, [DAY] of [MONTH], [YEAR]. WHEREAS, the Lender agrees to provide a financial loan to the Borrower, and the Borrower agrees to accept the loan under the terms set forth in this Agreement. The parties are entering into this Agreement for personal and family reasons, emphasizing the mutual trust and confidence between them.
LOAN AMOUNT AND DISBURSEMENT
The Lender agrees to loan the Borrower the principal sum of $[AMOUNT] (the "Loan"). The Loan will be disbursed to the Borrower's bank account upon the execution of this Agreement. The provision of these funds is a gesture of trust and familial support, and the Borrower acknowledges this intent with the acceptance of these terms.
INTEREST RATE
This Loan shall be extended with an interest rate of [INTEREST RATE]% per annum. The interest will be calculated on a yearly basis, and shall be added to the principal amount for the purpose of calculating annual payments. This rate is agreed upon by both parties considering their close personal relationship and is intended to cover just the cost of inflation and risk without any financial gain.
REPAYMENT TERMS
The Borrower agrees to repay the Loan in full by [REPAYMENT DATE], including any accrued interest. Repayment shall be made in yearly installments of $[INSTALLMENT AMOUNT], starting the year following the Loan disbursement. Early repayment of the Loan is permitted without penalty. Each payment will be duly recorded in a written notice, acknowledging the reduction of the Loan balance.
DEFAULT AND ACCELERATION CLAUSE
If the Borrower fails to make any scheduled repayment within [NUMBER] days after the due date, they shall be considered in default of this Agreement. In such an event, the full remaining balance of the Loan, including accrued interest, will become immediately due and payable at the Lender’s discretion. The parties agree to this clause to ensure diligent repayment and the preservation of their financial and familial relationship.
GOVERNING LAW
This Agreement shall be governed by and interpreted in accordance with the laws of the state in which the Lender resides. Any disputes arising from this Agreement shall be resolved in the relevant courts of this jurisdiction. This choice of law is intended to provide a clear legal framework and enhance enforceability of this Agreement.
SIGNATURES:
IN WITNESS WHEREOF, the parties hereto have executed this Family Loan Agreement as of the date first written above.
Signature: ____________________________________
Name: Nicholas E. Peters
Date: [DATE]
Signature: ____________________________________
Name: Maribel F. Hammond
Date: [DATE]
