Free Credit Agreement Template
Credit Agreement
This Credit Agreement (“Agreement”) is entered into on the 20th day of January 2050, between [Your Name] ("Borrower") and [Lender's Name] ("Lender").
1. Effective Date
This Credit Agreement, also referred to as the "Agreement", is set to become operational and effective on the date specified as the 20th day of January in the year 2050.
2. Loan Facility
2.1 Loan Amount
The Lender agrees to provide the Borrower with a credit facility in the principal amount of [Amount].
2.2 Purpose of Loan
The Borrower shall utilize the proceeds of the Loan to purchase new equipment for its manufacturing operations.
2.3 Interest Rate
The Loan shall bear interest at the rate of 5% per annum, compounded monthly.
2.4 Term
The term of the Loan shall commence on the Effective Date and shall continue until the Maturity Date.
3. Repayment Terms
3.1 Repayment Schedule
The Borrower shall repay the outstanding principal balance of the Loan, together with accrued interest, commencing on May 1, 2050, and continuing thereafter every month until the Loan is fully repaid.
3.2 Prepayment
The Borrower may prepay the Loan, in whole or in part, at any time without penalty.
4. Charges
4.1 Late Payment Fee
In the event of any late payment, the Borrower shall pay a late payment fee of $50 per occurrence.
5. Representations and Warranties
The Borrower represents and warrants to the Lender that:
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The information provided in connection with the Loan application is true, accurate, and complete.
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The Borrower has the authority to enter into and perform its obligations under this Agreement.
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The execution, delivery, and performance of this Agreement do not violate any law or conflict with any contractual obligation of the Borrower.
6. Events of Default
6.1 Default
The occurrence of any of the following events shall constitute an event of default under this Agreement:
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Failure to make any payment when due.
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Breach of any covenant or obligation under this Agreement.
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Insolvency, bankruptcy, or liquidation of the Borrower.
6.2 Remedies
Upon the occurrence of an event of default, the Lender shall be entitled to exercise any rights and remedies available under applicable law or this Agreement.
7. Governing Law and Jurisdiction
The terms of this Agreement shall be interpreted and regulated under the established laws belonging to the stated jurisdiction, being the State of [Specify Jurisdiction]. If any form of disagreement, quarrel, or conflict emerges from or is linked to this Agreement, it will be addressed and dealt with conclusively under the unique authority of the court system belonging to the said jurisdiction, precisely the courts in the State of [Specify Jurisdiction].
8. Entire Agreement
This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.
IN WITNESS WHEREOF, the parties hereto have executed this Credit Agreement as of the date first above written.
[Your Name]
Borrower
[Date Signed]
[Lender's Name]
Lender
[Date Signed]
