Promissory Loan Agreement
This Promissory Loan Agreement ("Agreement") is made and entered into on January 15, 2050, by and between:
Lender: [Your Name], residing at 123 Elm Street, Springfield, IL 62701, ("Lender"), and
Borrower: Sarah J. Williams, residing at 456 Oak Avenue, Springfield, IL 62702, ("Borrower").
1. Loan Amount
The Lender agrees to loan the Borrower the sum of Fifty Thousand Dollars ($50,000.00) (the "Loan").
2. Interest Rate
The Loan will bear an interest rate of 5% per annum, calculated on the principal amount of the Loan.
3. Repayment Terms
The Borrower agrees to repay the Loan as follows:
The Loan shall be repaid in 60 equal monthly installments of $943.56 each.
Payments will be due on the 15th day of each month, starting on February 15, 2050 and continuing until the Loan is fully repaid, with the final payment due on January 15, 2055.
All payments shall be made by check, bank transfer, or other mutually agreed-upon payment methods to the Lender’s account at Springfield Bank, Account No. 987654321.
4. Late Payment
If the Borrower fails to make a payment within 15 days of the due date, a late fee of $50.00 will be charged for each missed payment.
5. Prepayment
The Borrower may prepay the Loan, in full or in part, at any time without penalty. Any prepayments will be applied to reduce the principal balance, and the Borrower may request an updated repayment schedule reflecting any changes.
6. Acceleration Clause
If the Borrower fails to make a payment within 30 days of the due date or otherwise defaults on any other terms of this Agreement, the Lender may declare the entire remaining balance of the Loan, including accrued interest, immediately due and payable.
7. Use of Loan
The Borrower agrees to use the Loan for personal purposes, specifically to fund home improvements at the Borrower’s property located at 456 Oak Avenue, Springfield, IL 62702.
8. Default
If the Borrower defaults on this Loan, the Lender may pursue all legal remedies available, including filing a lawsuit for recovery of the remaining balance, plus any applicable interest, late fees, and legal costs incurred.
9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state of Illinois.
10. Amendments
Any amendments, modifications, or supplements to this Agreement must be in writing and signed by both the Borrower and the Lender.
11. Severability
If any provision of this Agreement is found to be invalid or unenforceable by a court of law, the remainder of this Agreement will remain in full force and effect.
12. Entire Agreement
This Agreement constitutes the entire agreement between the parties regarding the Loan and supersedes all prior oral or written agreements or understandings related to the Loan.
13. Signatures
By signing below, both the Borrower and the Lender confirm that they have read, understood, and agree to the terms and conditions outlined in this Agreement.
[Your Name]
[Date]
Sarah J. Williams
[Date]
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