Free Loan Agreement Between Two Parties Template
Loan Agreement Between Two Parties
This Loan Agreement ("Agreement") is made and entered into as of January 15, 2071, by and between:
Lender: [YOUR COMPANY NAME], with a principal address at [YOUR COMPANY ADDRESS] ("Lender"),
AND
Borrower: Clint Renner, with a principal address at Detroit, MI 48201 ("Borrower").
Both the Lender and Borrower may collectively be referred to as the "Parties."
1. LOAN AMOUNT AND TERMS
The Lender agrees to loan the Borrower the amount of Five Hundred Thousand Dollars ($500,000) (the "Loan"). The Loan shall be provided in one lump sum on February 1, 2071.
2. LOAN PURPOSE
The Loan is provided for the purpose of expanding the Borrower's eco-friendly manufacturing business to include solar panel production and energy-efficient technologies. The Borrower agrees to use the Loan exclusively for this purpose.
3. INTEREST RATE
The Loan will bear interest at the rate of 5% per annum, calculated on the basis of a 365-day year, compounded annually.
4. LOAN TERM AND REPAYMENT
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The term of the Loan shall be 10 years. The Borrower agrees to repay the Loan in full, with interest, by February 1, 2081.
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Repayment will be made in 120 equal installments of $5,500 each, due on the 1st of each month.
5. EARLY REPAYMENT
The Borrower has the right to repay the Loan in full or in part at any time without penalty. Early repayment will be applied first to interest, then to principal.
6. DEFAULT
In the event the Borrower fails to make a payment within 30 days after the due date, the entire outstanding balance of the Loan, including accrued interest, shall become immediately due and payable. The Lender may also take legal action to recover the unpaid amounts.
7. COLLATERAL
As security for the Loan, the Borrower agrees to pledge the following collateral: a first-lien mortgage on a commercial property located at Detroit, MI 48201. The Lender shall have the right to take possession of the collateral in the event of default under the terms of this Agreement.
8. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, without regard to its conflict of laws principles.
9. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the Parties regarding the Loan and supersedes all prior agreements, whether written or oral, between the Parties on this subject.
10. AMENDMENTS
Any amendments to this Agreement must be made in writing and signed by both Parties.
11. NOTICES
Any notices required or permitted under this Agreement shall be in writing and sent to the addresses listed above or such other address as either Party may designate in writing. Notices shall be deemed received upon delivery if hand-delivered, or three (3) business days after being mailed by certified mail.
12. REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants that:
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The Borrower is legally able to enter into this Agreement.
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The Loan will not be used for any illegal purpose.
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The Borrower will repay the Loan according to the terms outlined herein.
The Lender represents and warrants that:
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The Lender is legally able to provide the Loan.
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The Loan will not violate any applicable laws or regulations.
13. SIGNATURES
IN WITNESS WHEREOF, the Parties have executed this Loan Agreement as of the date first above written.
Lender's Signature:
[YOUR NAME]
CEO, [YOUR COMPANY NAME]
Borrower's Signature:
Clint Renner
Owner, MultiCorp