Free Fund Project Loan Term Sheet Template
Fund Project Loan Term Sheet
I. Introduction
This Fund Project Loan Term Sheet ("Term Sheet") outlines the preliminary agreement between [Your Company Name] ("Lender") and [Borrower Name] ("Borrower") regarding the terms and conditions of the loan for the [Project Name] initiative. The Term Sheet serves as a guideline for the negotiation of a formal loan agreement and provides clarity on essential aspects of the financing arrangement.
II. Loan Details
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Loan Amount: The principal amount of the loan shall be [Loan Amount], subject to adjustment as agreed upon between the Lender and Borrower.
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Interest Rate: The interest rate for the loan shall be [Interest Rate] per annum, compounded [monthly], calculated on the outstanding balance.
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Repayment Terms: The loan shall be repaid in [monthly] installments throughout 1 year/s, commencing on [Date], with a final balloon payment of the remaining balance due on [Date].
III. Collateral
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Primary Collateral: The loan shall be secured by a parcel of land located at [Address], measuring [Size of Land] square meters, valued at [Collateral Value], subject to evaluation by an independent appraiser approved by the Lender.
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Additional Collateral: The Borrower may be required to provide additional collateral or personal guarantees as deemed necessary by the Lender to mitigate risk.
IV. Special Conditions
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Disbursement Schedule: The loan proceeds shall be disbursed in [single lump sum] as per the agreed-upon schedule based on project milestones and financing needs.
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Use of Funds: The loan funds shall be utilized exclusively for the [Project Name] initiative as outlined in the project proposal submitted to the Lender.
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Reporting Requirements: The Borrower shall provide regular progress reports to the Lender, including financial statements, project updates, and any deviations from the proposed plan.
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Prepayment Option: The Borrower may have the option to prepay the loan, in whole or in part, at any time without penalty, subject to the Lender's approval and any applicable fees.
V. Governing Law and Jurisdiction
This Term Sheet shall be governed by and construed by the laws of [Jurisdiction], and any disputes arising out of or in connection with this agreement shall be subject to the exclusive jurisdiction of the courts of [Jurisdiction].
VI. Execution
This Term Sheet constitutes a preliminary agreement between the Lender and Borrower and is subject to further negotiation and execution of a formal loan agreement. By signing below, the parties acknowledge their intent to proceed with the negotiation of the loan terms outlined herein.
