Restaurant Financing Agreement
Restaurant Financing Agreement
This Restaurant Financing Agreement ("Agreement") is made and entered into as of [Date], by and between [Your Company Name], a restaurant business organized and existing under the laws of [State/Country], with its principal place of business located at [Your Company Address] ("Borrower"), and [Lender's Name], with its principal place of business located at [Lender's Address] ("Lender").
WHEREAS, the Borrower is in need of financial assistance for the purpose of expanding its operations, renovating its facilities, and purchasing new kitchen equipment; and
WHEREAS, the Lender is willing to provide a loan to the Borrower under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties hereto agree as follows:
1. Loan Amount and Disbursement
1.1 Loan Amount
The Lender agrees to loan to the Borrower the principal sum of [Loan Amount] ("Loan").
1.2 Disbursement
The Loan shall be disbursed to the Borrower in one lump sum payment on [Disbursement Date] or as otherwise agreed upon by both parties.
2. Interest Rate and Payment Terms
2.1 Interest Rate
The Loan shall bear interest at the rate of [Interest Rate]% per annum, calculated based on a 360-day year.
2.2 Payment Schedule
The Borrower agrees to repay the Loan in [Number of Installments] equal monthly installments of $[Amount] each, commencing on [First Payment Date] and continuing on the [Day] of each month thereafter until the Loan is fully paid.
2.3 Prepayment
The Borrower may prepay the Loan in whole or in part at any time without penalty. Any prepayment shall be applied first to accrued interest and then to the principal balance.
3. Use of Loan Proceeds
The Borrower agrees to use the proceeds of the Loan solely for the purpose of expanding its restaurant facilities, renovating its existing infrastructure, and purchasing new kitchen equipment. The Borrower shall provide the Lender with documentation evidencing the use of the Loan proceeds upon request.
4. Representations and Warranties
The Borrower represents and warrants to the Lender as follows:
4.1 Organization and Authority
The Borrower is duly organized, validly existing, and in good standing under the laws of [State/Country] and has full power and authority to enter into and perform its obligations under this Agreement.
4.2 No Conflicts
The execution, delivery, and performance of this Agreement by the Borrower do not and will not conflict with or result in a breach of any agreement, instrument, order, or decree to which the Borrower is a party or by which it is bound.
4.3 Financial Statements
The financial statements of the Borrower provided to the Lender are true, complete, and accurate in all material respects and fairly present the financial condition of the Borrower as of the dates thereof.
5. Covenants
The Borrower covenants and agrees with the Lender as follows:
5.1 Financial Reporting
The Borrower shall provide the Lender with quarterly financial statements and an annual audited financial statement within [Number] days of the end of each fiscal year.
5.2 Maintenance of Business
The Borrower is obligated to ensure that its business operations and properties are maintained in good working order and condition, this includes upholding a standard that accounts for ordinary wear and tear.
5.3 Insurance
The Borrower shall maintain insurance coverage on its properties and business operations in amounts and with coverages customary for businesses of similar size and type.
6. Events of Default
Each of the following shall constitute an "Event of Default" under this Agreement:
6.1 Non-Payment
The Borrower does not make any required payment on the scheduled due date as stipulated in this Agreement.
6.2 Breach of Covenants
The Borrower does not fulfill their obligations or adhere to any of the covenants or agreements stipulated within this Agreement.
6.3 Insolvency
The Borrower becomes insolvent or becomes the subject of any bankruptcy proceeding or any other insolvency-related legal proceedings.
7. Remedies
Upon the occurrence of an Event of Default, the Lender may, at its option, declare the entire principal amount of the Loan, together with all accrued interest, immediately due and payable, and may exercise any and all rights and remedies available to it under applicable law.
8. Miscellaneous
8.1 Notices
All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or mailed by certified mail, return receipt requested, to the parties at their respective addresses set forth above.
8.2 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of laws principles.
8.3 Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof.
8.4 Amendment
This Agreement can only be modified through a written document that is duly executed with the signatures of both parties involved.
8.5 Waiver
No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver unless otherwise expressly provided.
8.6 Severability
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect.
8.7 Counterparts
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Restaurant Financing Agreement as of the day and year first above written.
[Your Company Name]
[Your Name]
[Job Title]
[Lender's Name]
[Lender's Name]
[Job Title]
