Loan Repayment Contract
Loan Repayment Contract
1. Introduction
This Loan Repayment Contract ("Contract") is entered into on [date of execution], between [Your Name], hereinafter referred to as the "Lender", a [description of legal entity], and [Borrower's Name], hereinafter referred to as the "Borrower", a [description of legal entity].
2. Loan Details
2.1 Amount of the Loan
The lender agrees to provide a loan of $50,000 (Fifty Thousand US Dollars), hereinafter referred to as the "Loan."
2.2 Purpose of the Loan
The Loan is intended for business expansion as communicated by the Borrower to the Lender.
2.3 Date of Disbursement
The Loan shall be disbursed on [Date].
3. Terms of Repayment
3.1 Total Repayment Amount
The Borrower agrees to repay the Loan amount along with accrued interest, resulting in a total repayment amount of $55,000 (Fifty-Five Thousand US Dollars).
3.2 Repayment Schedule
The Loan shall be repaid in monthly installments, with the first payment due on [Date], and subsequent payments due on the 25th of each month thereafter.
3.3 Interest Rate
The Loan shall accrue interest at the rate of 5% per annum, calculated on the outstanding balance.
3.4 Grace Period
A grace period of 10 days shall be provided before late payment penalties are imposed.
4. Method of Repayment
4.1 Accepted Payment Methods
The Borrower shall make repayments via bank transfer to the account specified by the Lender.
4.2 Payment Location
Payments shall be made to the Lender's bank account.
4.3 Late Payment Penalties
In the event of late payment, the Borrower shall incur a penalty of 2% of the overdue amount for each day of delay.
5. Security/Collateral
5.1 Description of Collateral
The Borrower shall provide a lien on its equipment inventory as collateral for the Loan.
5.2 Conditions for Default and Repossession
In the event of default, the Lender reserves the right to repossess the collateral as outlined in a separate agreement or as permitted by law.
6. Prepayment
Terms and Conditions for Early Repayment
The Borrower may prepay the Loan in full or in part at any time without penalty or additional fees.
7. Representations and Warranties
7.1 Legal Authority
Both parties represent and warrant that they have the legal authority to enter into this Contract and fulfill their obligations hereunder.
7.2 Borrower's Ability to Repay
The Borrower represents and warrants that it possesses the financial capacity to repay the Loan as per the terms outlined herein.
8. Default
8.1 Conditions for Default
The Loan shall be considered in default if the Borrower fails to adhere to any of the terms outlined in this Contract.
8.2 Consequences of Default
Upon default, the Lender may declare the entire outstanding balance of the Loan immediately due and payable and pursue legal action to recover the outstanding amount.
9. Miscellaneous Provisions
9.1 Governing Law
This Contract shall be governed by and construed under the laws of the [Jurisdiction].
9.2 Entire Agreement Clause
This Contract constitutes the entire agreement between the parties concerning the subject matter herein and supersedes all prior agreements and understandings, whether written or oral.
9.3 Amendments and Modifications
Any amendments or modifications to this Contract shall be made in writing and duly signed by both parties.
9.4 Severability Clause
If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
9.5 Notices
Any notices or communications required or permitted under this Contract shall be deemed duly given when delivered personally or sent by registered mail to the addresses of the parties as provided herein.
10. Signatures
In Witness Whereof, the parties hereto have executed this Loan Repayment Contract as of the date first above written.
[Borrower's Name]
[Date Signed]
[Your Name]
[Date Signed]
