Money Contract
Money Contract
This Money Contract ("Contract") is entered into on this [Date] (the "Effective Date") by and between: [Your Company Name], a [type of entity] with its principal place of business located at [Your Company Address] ("Lender"),
and [Client Name], a [type of entity] with its principal place of business located at [Client Address] ("Borrower").
1. Loan Details
1.1 Loan Amount: The Lender agrees to provide a loan of USD 50,000 to the Borrower.
1.2 Purpose: The Borrower shall use the loan proceeds to purchase new inventory to expand their product line.
1.3 Interest Rate: The loan shall bear interest at a rate of 8% per annum, calculated on the outstanding principal balance.
1.4 Repayment Terms: The Borrower agrees to repay the loan in 24 equal monthly installments of USD 2,250 each, starting on [DATE], and continuing on the same day of each month thereafter until the loan is fully repaid.
1.5 Prepayment: The Borrower reserves the right to prepay the outstanding balance of the loan at any time without penalty.
2. Security/Collateral
The individual who is borrowing is obliged to ensure a provision of personal assurance. This assurance is expected to originate from none other than the very CEO of the company involved. On top of that, the borrower needs to place a lien on the inventory that has been recently procured. Both the personal guarantee from the CEO and the lien on the new inventory will serve as necessary security for the loan in question.
3. Representations and Warranties
3.1 Borrower's Capacity: The Borrower represents and warrants that it has the legal capacity and authority to enter into this Contract and to borrow the funds as contemplated herein.
3.2 No Defaults: The Borrower represents and warrants that it is not in default under any other contract or obligation that would prevent it from fulfilling its obligations under this Contract.
4. Default and Remedies
The Borrower shall be deemed in default under this Contract if it fails to make any payment when due or breaches any other material term or condition of this Contract. In the event of default, the Lender shall have the right to pursue any remedies available at law or in equity, including but not limited to accelerating the loan, demanding immediate repayment of the outstanding balance, and enforcing any security interests or collateral provided by the Borrower.
5. Representations
Each party represents that it has the full power and authority to enter into and perform this Contract and that it has taken all necessary action to authorize the execution, delivery, and performance of this Contract.
6. Indemnity
Borrower shall indemnify and hold harmless Lender from any loss, liability, damage, or expense, including reasonable attorney’s fees, caused by any breach of any of the representations, warranties, and covenants made by Borrower in this Contract.
7. Governing Law
This Contract shall be governed by and construed by the laws of [Governing Law and Jurisdiction]
IN WITNESS WHEREOF, this Loan Contract has been duly executed by the duly authorized representatives of the parties as of the date first above written.
[Your Name]
[Date Signed]
[Client's Name]
[Date Signed]
