Personal Payment Contract
Personal Payment Contract
This Personal Payment Contract ("Contrac") is entered into this [DATE], by and between [LENDER NAME], of [LENDER ADDRESS], ("Lender"), and [BORROWER NAME], of [BORROWER ADDRESS], ("Borrower").
I. Loan Details
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Loan Amount: $5,000.00
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Loan Date: [Date]
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Interest Rate: 5% per annum
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Repayment Period: Monthly
II. Repayment Terms
The Borrower agrees to repay the loan amount to the Lender in:
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Payment Frequency: Monthly
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Installment Amount: $200 (Two hundred dollars)
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Start Date: [Date]
The repayment shall be made in:
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Payment Method: Bank transfer
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Lender's Account Details:
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Bank Name: XYZ Bank
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Account Number: [Enter Account Number]
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Account Name: [Enter Account Name]
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Any late payments shall incur a late fee of:
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Late Fee Amount: 5% of the overdue amount
III. Interest
If interest is deemed applicable under the terms and conditions of this contract, a calculation will then be made, in which said interest shall be computed at an annual rate of five percent. It is important to note that the accrual of interest will commence from the moment this contract is signed and validated in force. This process will continue until the loan in question has been repaid in full by the borrower.
IV. Collateral:
The Borrower has provided the following collateral to secure the loan:
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Collateral Description: The collateral provided by the Borrower is a residential property located at [Property Address], which is free from any encumbrances or claims by third parties.
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Estimated Value of Collateral: According to an assessment completed by a certified appraiser on [Date], it has been determined that the collateral property that is being considered for this discussion has an estimated market value of around $250,000.
V. Late Payment or Default
In the event of late payment, the Borrower shall be responsible for paying any late fees and penalties as specified in this Contract.
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Late Fee
If payment is delayed beyond the due date specified in the repayment schedule, it has been established that a charge equal to 5% of the outstanding balance, or the overdue amount, will be imposed. Furthermore, it should be noted that this 5% charge will be applied for each week that the payment is not made.
Defaulting on the loan shall result in:
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Legal Action: The Lender reserves the right to initiate legal proceedings against the Borrower to recover the outstanding loan amount, accrued interest, and any associated costs or legal fees.
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Collateral Seizure: As this loan is secured, failure to repay the loan following the terms of this Contract may result in the Lender seizing and selling the collateral property to recover the outstanding debt.
VI. Termination
This Contract can be terminated by either the first party or the second party, but only if written notice is provided to the other party involved. Should the termination occur, the Borrower agrees that they will repay the outstanding balance of the loan in its entirety. The repayment must occur within a time frame of 30 days from the date that the termination of the Contract took place
VII. Confidentiality
It is agreed by both signatories of this contract that its stipulations should be kept private, signifying they can't be made known, shared, or exposed to external parties without prior written consent. Neither the responsibilities, entitlements nor other terms within this contract are planned to be disclosed or spread. Nevertheless, the exception to this confidential clause is if the law necessitates such information to be revealed.
VIII. Governing Law
The interpretation and execution of this Contract should strictly follow the laws of a designated jurisdiction, as explicitly outlined in the Contract. The Contract provides that any issues relating to its interpretation, application, or breach shall be exclusively brought to the legal courts of the specified jurisdiction, and not in any other legal environments, court systems, or jurisdictions.
IN WITNESS WHEREOF, the Lender and Borrower have executed this Personal Payment Contract as of the date first written above.
[LENDER NAME]
[BORROWER NAME]
