Loan Agreement Between Family Members
1. Introduction
This Loan Agreement (“Agreement”) is made and entered into on the 1st day of January, 2050, by and between John Doe, hereinafter referred to as the “Lender,” and Jane Smith, hereinafter referred to as the “Borrower.” The purpose of this Agreement is to formalize the terms under which the Lender extends a loan to the Borrower.
2. Loan Amount and Disbursement
The Lender agrees to lend the Borrower the sum of Ten Thousand dollars ($10,000) subject to the terms and conditions set forth herein. The funds shall be disbursed to the Borrower on or before January 15, 2050.
3. Interest
The Loan shall carry a simple interest rate of 5% per annum. Interest shall commence on the disbursement date and will be calculated on the outstanding loan balance.
4. Repayment Terms
The Borrower will repay the principal amount along with interest in 12 installments of Eight Hundred Eighty-Three dollars ($883) each. The payments shall be due on the first day of each month starting February 1, 2050.
5. Prepayment
The Borrower may prepay the Loan in whole or in part at any time without penalty. Any prepayments will reduce the principal balance, and the interest will be recalculated accordingly.
6. Late Payment
If any payment is not received by the due date, a late fee of Fifty dollars ($50) or 5% of the unpaid amount, whichever is greater, will be applied.
7. Default
Failure to make any payment within 10 days of its due date, or any other breach of this Agreement, shall constitute a default. Upon default, the entire amount of principal and interest remaining shall become immediately due and payable.
8. Governing Law
This Agreement shall be governed by and construed by the laws of the State of [State].
9. Amendment and Waiver
No amendment, waiver, or consent concerning any provision of this Agreement shall be effective unless contained in writing and signed by the parties hereto.
10. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement as of the day and year first above written.
[Your Name]
[Date]
John Doe
[Date]
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