Loan Agreement Contract
Loan Agreement Contract
This Loan Agreement Contract ("Contract") is made and entered into this, [date], by and between [Lender Name], a corporation duly organized and existing under the laws of its home jurisdiction, with its principal offices located at [Lender's Address] ("Lender") and [Borrower Name], a corporation duly organized and existing under the laws of its home jurisdiction, with its principal offices located at [Borrower's Address] ("Borrower") collectively referred to as the "Parties".
1. Loan Details:
Loan Amount: $XX, XXX
Repayment Schedule:
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Repayment Frequency: Monthly
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Total Number of Payments: X payments
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Due Dates: First payment due on [Date], subsequent payments due on [Date]
Late Payment Charges:
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A late payment fee of $XX will be charged for payments not received within [days] days from the due date.
Prepayment Terms:
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The Borrower may prepay the loan in full or in part at any time without penalty.
2. INTEREST
The loan that has been given will generate an interest rate that is equivalent to the stated [Interest Rate] on a per-annum basis. The computation of this interest is not a straightforward process, it is rather calculated based on the actual number of days that have elapsed within a single year. This year is either composed of 365 days or 366 days, contingent upon whether it is a leap year or not.
3. TERM OF LOAN
The lifespan of this Contract begins on the stipulated start date, referred to as [Commencement Date], and extends until the predetermined [End Date]. The parties involved in this Agreement can mutually agree to prolong the term beyond the [End Date] through a written agreement. On the other hand, the Agreement can conclude or be canceled before the stated [End Date] if it complies with the stipulations and terms outlined in this document.
5. SECURITY
The obligations of the Borrower under this Contract are secured by the following collateral, as outlined in the Security Contract executed concurrently herewith:
Equipment
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Make/Model: XYZ Industrial Generator Model ABC123
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Serial/Identification Number: [Insert serial number]
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Condition: Excellent condition, fully operational
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Valuation/Appraisal: $XX, XXX (Value as per recent appraisal or valuation)
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Maintenance: Borrower must perform regular maintenance as per manufacturer's recommendations, including servicing every 6 months by a certified technician.
6. EVENTS OF DEFAULT
If any of the listed circumstances arise such as the borrower failing to make a payment, filing for bankruptcy, becoming insolvent, or failing to uphold any other covenant, agreement, or obligation under this Contract, the lender has the right to consider the borrower in default and demand immediate full repayment of the loan.
7. GOVERNING LAW
This Contract will be regulated and interpreted in alignment with the laws of the [Governing Law Jurisdiction]. It's important to specify that these laws will be applied without any consideration to the principles of said jurisdiction that pertain to conflict or discrepancies in the legislation.
8. ENTIRE AGREEMENT
This Contract represents the complete and total agreement existing between the Parties. It replaces and supersedes any prior agreements, contracts, or understandings that may have previously occurred. This includes not only those that came before this Contract but also those that may have been concurrent with it. All past representations made between the Parties are also superseded by this Contract.
IN WITNESS WHEREOF, the Parties hereto have executed this Contract as of the date first above written.
[Lender Name]
[Borrower Name]
