Real Estate Leasehold Improvement Financing Agreement
Real Estate Leasehold Improvement Financing Agreement
This Real Estate Leasehold Improvement Financing Agreement ("Agreement") is entered into between [Your Company Name], a [Legal Entity Type] organized and existing under the laws of [Jurisdiction], with its principal place of business located at [Address] ("Lender"), and [Tenant Name], a [Legal Entity Type] organized and existing under the laws of [Jurisdiction], with its principal place of business located at [Address] ("Tenant").
WHEREAS, Tenant leases certain premises located at [Property Address] ("Premises") pursuant to a lease agreement dated [Lease Agreement Date]; and
WHEREAS, Tenant desires to undertake certain leasehold improvements to the Premises, and Lender is willing to provide financing for such improvements subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties agree as follows:
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Financing: Lender agrees to provide financing to Tenant in the amount of [Loan Amount] ("Loan Amount") for the purpose of funding leasehold improvements to the Premises. The Loan Amount shall be disbursed in accordance with a mutually agreed-upon draw schedule, subject to the satisfactory completion of each phase of the improvements.
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Interest and Repayment: The Loan Amount shall bear interest at a rate of [Interest Rate] per annum. Repayment of the Loan Amount, together with accrued interest, shall be made by Tenant to Lender in equal monthly installments over a period of [Repayment Period] commencing on [Commencement Date].
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Security: Tenant hereby grants to Lender a security interest in all leasehold improvements made to the Premises with the proceeds of the Loan Amount, including any fixtures, equipment, and other assets acquired with such proceeds, as collateral for the repayment of the Loan Amount and interest thereon.
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Conditions Precedent: The obligations of Lender under this Agreement are subject to the satisfaction of certain conditions precedent, including, but not limited to, the execution of any necessary loan documents and the provision of any required insurance or guarantees.
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Representations and Warranties: Tenant represents and warrants to Lender that (a) Tenant has full power and authority to enter into this Agreement; (b) the execution, delivery, and performance of this Agreement have been duly authorized by all necessary corporate action; (c) Tenant is in compliance with all applicable laws, regulations, and contractual obligations; and (d) Tenant has obtained all necessary approvals and consents required for the leasehold improvements.
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Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction].
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
[Your Company Name]
[Authorized Representative]
[Date]
[Tenant Name]
[Authorized Representative]
[Date]