Law Firm Loan Agreement
Law Firm Loan Agreement
This Law Firm Loan Agreement (the "Agreement") is entered into on [Date], by and between:
Lender:
[Your Company Name]
[Your Company Address]
[City, State, Zip Code]
Borrower:
[Second Party]
[Second Party Address]
[City, State, Zip Code]
Recitals
WHEREAS, the Borrower operates a law firm and requires additional capital to expand its practice;
WHEREAS, the Lender is willing to provide a loan to the Borrower subject to the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties agree as follows:
1. Loan Terms
1.1 Loan Amount: The Lender agrees to lend to the Borrower the principal amount of $[00,000] (the "Loan").
1.2 Interest Rate: The Loan shall bear interest at the rate of [00]% per annum.
1.3 Loan Term: The Loan shall be repaid in full by the Borrower to the Lender within [00] months from the date of disbursement.
1.4 Repayment Schedule: The Borrower shall repay the Loan in equal monthly installments of $[0,000], beginning on [First Due Date].
1.5 Prepayment: The Borrower may prepay the Loan in whole or in part at any time without penalty.
2. Security and Collateral
2.1 Collateral: The Borrower shall provide a first-priority security interest in its accounts receivable as security for the Loan.
2.2 Security Agreement: The Borrower agrees to execute a separate security agreement in favor of the Lender to secure the Loan.
3. Representations and Warranties
3.1 Authority: The Borrower has full power and authority to enter into and perform its obligations under this Agreement.
3.2 Legal Status: The Borrower is duly organized, validly existing, and in good standing under the laws of [State].
3.3 Litigation: There is no pending or threatened litigation or legal proceedings against the Borrower that could materially affect its ability to repay the Loan.
4. Covenants
4.1 Affirmative Covenants: The Borrower agrees to maintain adequate insurance coverage and provide the Lender with financial statements on a quarterly basis.
4.2 Negative Covenants: The Borrower agrees not to incur additional debt without the Lender's prior written consent.
5. Conditions Precedent
5.1 Disbursement: The obligation of the Lender to disburse the Loan is subject to the satisfaction of the following conditions precedent:
(a) Execution of this Agreement by both parties;
(b) Delivery of the executed security agreement by the Borrower;
(c) [Other conditions precedent].
6. Events of Default
6.1 Default: The occurrence of any of the following events shall constitute an event of default under this Agreement:
(a) Failure to make any payment of principal or interest when due;
(b) Breach of any covenant or agreement contained herein;
(c) [Other events of default].
7. Fees and Expenses
7.1 Fees: The individual who is borrowing the funds is in total agreement and is committed to providing payment to the individual or entity lending the funds. This payment is referred to as an origination fee and its quantity is calculated as [0]% of the total amount of the loan that was given out.
8. Governing Law and Jurisdiction
8.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State].
8.2 Jurisdiction: Any dispute arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts of [State].
9. Miscellaneous
9.1 Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written.
9.2 Amendments: No amendment or modification of this Agreement shall be effective unless it is in writing and signed by both parties.
10. Signatures
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
[Your Name]
[Your Company Name]
[Date]
[Second Party]
[Date]
