Secured Loan Agreement
This Secured Loan Agreement (“Agreement”) is made and entered into as of January 1, 2050, by and between:
Lender:
[Your Company Name]
[Your Company Address]
Borrower:
John Doe
456 Visionary Lane
Progress City, CA 90210
1. Loan Amount and Terms
1.1. Loan Amount: The Lender agrees to loan the Borrower the principal amount of $100,000 (One Hundred Thousand Dollars) (“Loan”).
1.2. Interest Rate: The Loan shall bear interest at the rate of 5% per annum, calculated on the outstanding balance.
1.3. Repayment: The Borrower shall repay the Loan in 120 monthly installments of $1,060.66 each, commencing on February 1, 2050, with the final payment due on January 1, 2060.
2. Collateral
2.1. Description of Collateral: As security for the Loan, the Borrower pledges the following asset (“Collateral”):
Residential Property located at 456 Visionary Lane, Progress City, CA 90210, including all improvements and fixtures, as described in Deed No. 987654321.
2.2. Ownership: The Borrower warrants that they are the sole legal owner of the Collateral and that it is free from any liens or encumbrances, except as disclosed to the Lender in writing.
3. Use of Funds
3.1. Purpose: The Loan proceeds shall be used for home renovation and improvement projects.
4. Borrower’s Covenants
4.1. Maintenance: The Borrower agrees to maintain the Collateral in good condition and not to sell, transfer, or otherwise dispose of it without the prior written consent of the Lender.
4.2. Insurance: The Borrower shall maintain comprehensive insurance coverage for the Collateral, naming the Lender as a loss payee.
5. Events of Default
5.1. Default Events: The Borrower shall be considered in default if:
Any payment is not made within 30 days of the due date.
The Borrower fails to perform any obligation under this Agreement.
The Borrower declares bankruptcy or insolvency.
5.2. Remedies: In the event of default, the Lender may:
Declare the entire Loan amount immediately due and payable.
Take possession of and sell the Collateral to satisfy the Loan, by applicable law.
6. Governing Law
This Agreement shall be governed by and construed by the laws of the State of California.
7. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions, negotiations, or understandings.
8. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
LENDER:
[Your Name]
BORROWER:
[Borrower's Name]
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