Free Repayment Agreement Template
Repayment Agreement
This Repayment Agreement ("Agreement") is entered into on [DATE], between:
[YOUR NAME], located at [YOUR COMPANY ADDRESS], hereinafter referred to as the "Creditor," and [NAME OF THE DEBTOR], located at [ADDRESS OF THE DEBTOR], hereinafter referred to as the "Debtor."
Whereas, the Debtor owes a certain debt to the Creditor for five thousand dollars ($5,000), hereinafter referred to as the "Debt";
Whereas, the Parties wish to formalize the terms and conditions for the repayment of the Debt;
Now, therefore, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:
1. Amount Owed
The current debt owed by the Debtor to the Creditor amounts to five thousand dollars ($5,000), encompassing both the principal amount borrowed initially and additional charges accrued over time. These supplementary costs, which may include interest and fees, have been implemented based on a mutually agreed-upon arrangement between the two parties. This agreement outlines the terms and conditions governing the calculation and imposition of these charges, ensuring transparency and fairness in the debt management process.
2. Repayment Schedule
The individual or entity who has the obligation, also referred to as the Debtor, has given their consent and commitment to reimburse the amount they owe, known as the Debt, to the person or institution to whom the money is owed, referred to as the Creditor. This reimbursement is to take place by a timeline and terms which are detailed in the following payment schedule.
2.1 Monthly Payments: The Debtor shall make monthly payments of two hundred dollars ($200) on the 15th of each month, starting from April 15, 2050, until the Debt is fully repaid.
2.2 Final Payment: The final payment shall include any remaining balance of the Debt and shall be made on or before December 31, 2050.
2.3 Early Repayment Option: The Debtor reserves the right to make additional payments or pay off the Debt in full before the scheduled final payment date without penalty.
3. Interest Rate (if applicable)
If the situation warrants, any outstanding Debt will incur additional charges in the form of interest as time progresses. It has been determined that this interest will accrue at a fixed rate of 5.25% per annum. The calculation for the accruing interest will be based on the existing balance of the Debt that remains unpaid and outstanding at any given moment in time.
4. Method of Payment
Payments should be made by the Debtor to the Creditor through a bank transfer method. The bank transfer can be completed by using the following account details provided by the Creditor.
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Bank Name: |
[INSERT BANK NAME] |
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Account Holder: |
[INSERT ACCOUNT HOLDER'S NAME] |
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Account Number: |
[INSERT ACCOUNT NUMBER] |
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Routing Number: |
[INSERT ROUTING NUMBER] |
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SWIFT/BIC Code (if applicable): |
[INSERT SWIFT/BIC CODE] |
5. Late Payment
If the debtor fails to make the agreed-upon payment according to the specified terms and timeline, the debtor acknowledges and agrees to incur a penalty for each separate instance of late payment. This penalty fee, applicable to each late payment occurrence, is set at twenty-five US dollars ($25). It is understood that this penalty fee serves as a deterrent to encourage timely payments and to compensate the creditor for any inconvenience or additional administrative costs incurred due to the late payment.
6. Prepayment
The individual or entity who is in debt, referred to as the Debtor, has set aside or preserved a specific right or privilege that allows them to make payments before they are due, known as prepayments, on the amount owed or the Debt. These prepayments can be made to settle the entire amount of the debt or just a portion of it. The Debtor is allowed to exercise this right at any point in time they deem suitable. What makes this arrangement particularly beneficial is that completing these prepayments will not attract any penalties or additional charges.
7. Default
If the party referred to as the Debtor fails to comply with the payment obligations as stipulated under the terms and conditions of this Agreement, the party known as the Creditor shall be entitled to exercise their legal rights to seek recourse. This may involve utilizing any solutions that are afforded to them under the framework of the law. The solutions available include but are not limited to, the acceleration of the Debt, which essentially means adjusting the schedule of payment such that the entirety of the outstanding amount owed becomes due immediately.
8. Governing Law
The Agreement that is being discussed herein is subject to and will be interpreted under the statutes, rules, and regulations of the jurisdictions and laws of the specific state or country named, without taking into consideration the conflicting legal provisions that may exist within those laws.
9. Entire Agreement
This Agreement serves as the complete understanding and agreement between the parties involved concerning the subject matter stipulated herein. It stands to replace and override any previous agreements, understandings, negotiations, and discussions that may have been made before this, regardless of whether these earlier agreements or discussions were conveyed verbally or in written form.
10. Amendments
Should there be any revisions or changes to this Agreement, it is necessary that these amendments are documented in written form and should carry the authentic signatures of both Parties involved.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
[YOUR COMPANY NAME]
[DATE SIGNED]
[DEBTOR'S COMPANY NAME]
[DATE SIGNED]
